Valor Real Estate Partners, in a joint venture with QuadReal Property Group, has bought Tesco’s last-mile distribution centre at Dolphin Park in Purfleet, Essex, from Canada Life.
The 630,000 sq ft facility transacted at £130m, marking the jv’s largest single-asset acquisition to date, and the largest purchase of a single-tenant last-mile asset in the UK since 2022.
The warehouse serves as a storage and distribution facility for ambient goods to stores across London and the South East, with an average of 800 lorry movements per day. The building, which houses 1,200 employees, sits in the M25 corridor and also has good access to the A13. Tesco has nine years remaining to lease expiry.
Jeremy Achkar, senior vice president at Valor, said: “This transaction represents a rare opportunity to acquire a core urban logistics asset of scale in one of the London area’s most competitive submarkets in the M25 corridor and close to major ports. It is further evidence of our ability to identify and execute opportunities through the market cycle.”
Thomas Blangy, senior vice president at QuadReal Property Group, said: “Our long-term investment strategy targets high-growth urban logistics hubs, and this transaction expands our allocation within a globally resilient and high-performing asset class.”
This deal takes the amount deployed by the jv across key London urban logistics submarkets to £1.1bn since Q4 2020.
Photo from Valor Real Estate Partners and QuadReal Property Group
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