Investec Bank’s equity strategy Realis has formed a joint venture with Kier Property to develop £400m GDV of urban logistics assets across England.
The JV is Investec and Kier’s third partnership, and the first under the Realis structure. Under their previous Logistics City and Trade City JV they completed 13 urban logistics developments across the UK.
It has secured its first site with the off-market acquisition of a 4.4-acre former office site in Hemel Hempstead, Hertfordshire, which will be redeveloped into a seven-unit trade and logistics scheme, providing 87,000 sq ft of industrial space.
The acquisition is Realis’ third, and its first in the industrial & logistics development sector. Its previous acquisitions were in offices and living assets.
Yon Papageorgiou, head of real estate equity investments at Investec, said: “The UK urban logistics sector continues to benefit from compelling structural tailwinds, namely an increase in onshoring and e-commerce penetration, while the erosion of industrial land in major UK cities is reducing supply and underpinning attractive rental growth.
“Kier Property is a trusted, long-term partner with a market-leading development and subsector track record, which we can leverage to access this highly granular part of the market while also minimising any planning and speculative development risk.”
Leigh Thomas, group managing director at Kier Property, added: “This first acquisition on behalf of this new joint venture with Investec is a significant opportunity to deliver a sustainable and high-quality trade and logistics development in a prime location. Hemel Hempstead’s excellent connectivity, strong market yields and established industrial base make it an ideal location for businesses looking to expand.
“At Kier Property, we are committed to driving sustainable growth and delivering developments that meet the evolving needs of the industrial sector via a range of funding structures, and this latest collaboration with Investec is a continuation of what is now a very long-standing and successful partnership.”
Send feedback to Akanksha Soni
