Valor Real Estate Partners has bought a Booker-let warehouse in Acton, west London, from Schroder REIT (SREIT) for £18.9m, and a net initial yield of 3.5%.

The 64,614 sq ft warehouse produces an annual income of £700,000 and is let to Booker until 2026.

Valor’s Greater London portfolio now extends to 1.3m sq ft. It has now acquired £300m of logistics assets in Greater London since Q4 2016, as part of a broader Pan-European strategy that has seen Valor amass around €600m of in-fill logistics assets across 21 transactions in the UK, France and Germany.

For SREIT, the disposal is consistent with its strategy to sell lower yielding assets and to realise gains from asset management. Since 31 December 2018, it has sold five for £68.9m at an average net initial yield of 3.1%.

Cane Napolitano, principal at Valor, said: “In addition to being Valor’s fourth acquisition of 2019 within the urban submarkets of London’s transit zones 2-4, this investment is our second in as many months in an area undergoing regeneration. Similarly, to our April acquisition in Barking, the Acton industrial submarket is incredibly supply-constrained and is facing a further loss of industrial stock through residential up-zoning.”

Valor was advised by Levy, Schroders was advised by Savills.