Chancerygate and Hines buy Oldham site for logistics jv

Chancerygate and Hines have formed a new joint venture focusing on multi-let urban logistics schemes, with its first acquisition in Oldham, greater Manchester. The jv is funded by Hines European Real Estate Partners III and has more than £1.3bn of equity commitments. In Oldham, the duo seeks to speculatively develop 166,500 sq ft of grade-A sustainable urban logistics space. Subject to planning, the new scheme will comprise 18 leasehold units ranging from 4,700 sq ft to 20,500 sq ft. When completed, the scheme will have a gross development value of around £39m. All properties at the development will target minimum EPC rating of A and a BREEAM Excellent rating. The jv acquired the site from FO Developments, a consortium comprising Oldham Council, Grasscroft Property and Seddon Developments, for an undisclosed sum. The 7.5-acre site is located at Broadway Green on the Lydia Becker Way spine road. It was the last commercial site available for acquisition on Broadway Green. The acquisition marks Chancerygate’s second scheme there, having completed a 108,000 sq ft development called Broadway Central (pictured) in March this year. Broadway Central is 35% let and under offer. Chancerygate and Hines have worked together since 2018, when the two businesses announced an equal jv partnership, targeting prime sites across the UK for high-quality urban logistics developments. The previous jv invested into eight schemes and delivered around 1m sq ft. Chancerygate managing director Richard Bains, said: “Our first joint venture partnership with Hines was extremely successful in delivering strategically located multi-let urban logistics schemes across the UK. “We forged a highly effective working relationship during that time, so we are excited to once again partner with Hines to deliver grade-A, sustainable accommodation where it is most needed.” Greg Cooper, managing director and head of UK industrial and logistics at Hines, said: “The partnership will be well placed to meet HEREP III’s objective to execute the development of modern sustainable multi let urban logistics product in strategic urban distribution nodes.” Davies Harrison advised Chancerygate and Hines, while JLL acted for FO Developments. Davies Harrison and JLL have been appointed as lettings agents for the proposed development. Check out occupational sales comparables in Oldham >> Photo © Brand8 PR on behalf of Chancerygate