Real estate company Hines has acquired Dnata logistics park near Heathrow Airport on behalf of the Hines Pan-European Core Fund (HECF) from Aberdeen Standard Investments for a sum of £80m.
Hines has approximately $144.1bn (£108.7bn) worth of assets under management, including $75.5 billion (£56.9bn) for which Hines serves as investment manager.
The 19,418-square-meter complex is located south of the airport’s southern perimeter boundary and is occupied by Dnata, Heathrow’s dominant cargo operator.
The Dnata City site consists of three logistical warehouses that provide secure air cargo campus facilities to the airport.
Heathrow Airport stated it aims to increase its cargo tonnage by more than 4 million tonnes a year by 2040.
While the majority of the Heathrow logistics market is dedicated to serving the airport, it also reportedly forms part of West London’s “wider distribution infrastructure” including other sub-markets at Park Royal, Feltham, and Poyle.
Peter Epping, senior MD and HECF Fund manager at Hines, said: “The Dnata City site offers excellent proximity to Heathrow.
“Given the heavily supply-constrained location, we see strong long-term prospects for this prime asset beside one of Europe’s busiest airports, which will be a critical part of the UK’s travel and logistics infrastructure beyond the pandemic.”
He added: “This latest acquisition continues our strategy of leveraging our European platform and aggregating an urban logistics portfolio for HECF in European cities with the strongest long-term growth prospects.”
Since 2019, HECF said it sought to increase its exposure to urban logistics assets in key European cities with strong long-term growth prospects.
The Heathrow acquisition represents the fourth urban logistics investment by HECF, and the third in Greater London, over the last 18 months.
Greg Cooper, director of industrials and logistics at Hines UK, said: “The Heathrow logistics market boasts defensive characteristics of restricted supply, limited new development opportunities and an acute shortage of Grade A fit-for-purpose accommodation.
“Dnata City provides some of the most modern cargo facilities within the cargo zone and critically is three to five minutes from the main airport cargo gate. The property is truly critical infrastructure and we look forward to working with Dnata going forward.”