Valor Real Estate Partners has paid circa £70m to supplement its growing London platform with two urban logistics estates, React News can reveal.

The expanding last-mile specialist has bought assets in Mitcham and Watford from DTZ Investors.

Valor has completed the acquisition of the 105,000 sq ft Mitcham Industrial Estate in south London. Currently 72% occupied by tenants spanning the self-storage and DIY sectors, it offers a mix of day one income and a near-term repositioning opportunity, via the refurbishment of a vacant unit.

In Watford, Valor has acquired a 2.87 acre site in an infill location close to the M1 and the M25. The asset, which includes four units of between 13,000 and 19,000 sq ft, is fully let on long-term tenancies.

Valor said both submarkets are characterised by a “demand supply imbalance, driven by competition from alternative uses and an increasing need for businesses to have access to dominant metropolitan centres in ever shorter drive times.”

Earlier this month, Valor purchased two urban logistics estates in Wandsworth and Tottenham for more than £30m. That deal was preceded by the £23m purchase of three urban logistics assets in London.

Jeremy Achkar, vice president of investments at Valor, said:

“Watford and Mitcham are two of London’s most supply constrained submarkets. These purchases both offer the ability to drive the rental tone through active asset management, which we look forward to effectuating in short order.”

Valor was advised by Clifton Agency in Watford. DTRE acted for Valor on the acquisition in Mitcham.