Further signs of renewed confidence in the West London industrial property market came with The Airport Property Partnership (APP) starting construction of two facilities totalling 8,000 m2 at at North Feltham Trading Estate, in a logistics development to serve Heathrow Airport.
APP, is a joint venture between UK REIT Segro and Aviva Investors, who last month were said to be looking to offload half of their 50% stake in APP for £193 million. Aviva is providing the debt funding for the JV as well, so this is thought to be a risk reduction excercise.
One of the facilities, comprising 6,500 m2, is pre-let to Toll Global Forwarding. The partnership has also decided to develop a 1,500 m2 facility on a speculative basis.
Andy Gulliford, director of APP and Segro's chief operating officer, commented: 'We have worked very closely with Toll Global Forwarding on their requirements and this new development will provide them with a secure, modern and efficient facility from which they can expand their operations. Additionally, as we are continuing to experience demand for our well located, high quality buildings, we are delighted to be undertaking speculative development in the prime Heathrow market for the first time in five years.'