Developer Chancerygate and Hines’s UK logistics real estate partnership has acquired a site in Redditch, Worcestershire to speculatively build 139,000sqft of urban logistics space worth around £35m (€35m).
The joint venture has bought the 6.4-acre site to develop assets across 11 leasehold units ranging from 7,685sqft to 15,950sqft. The site was acquired from a private seller for an undisclosed price.
Subject to planning approval, the joint venture (JV) expects to start construction by the end of 2025 and complete the project by the end of 2026.
Chancerygate and Hines recently expanded on their prior collaboration by creating a new joint venture focused on developing multi-let urban logistics schemes, backed by Hines European Real Estate Partners (HEREP) III.
Rob Watts, development manager at Chancerygate, said: “This site’s strategic gateway location into Redditch, within an established industrial area and proximity to transport links makes it the perfect opportunity for our JV with Hines. There is unsatisfied demand for high-specification urban logistics units across Redditch, Worcestershire and the wider West Midlands region.
“We believe our proposed development will address this through offering new, Grade A sustainable units which is fit for purpose for a range of prospective occupiers. This belief is informed by the fact we have already seen significant interest in the scheme from potential occupiers.”
Greg Cooper, managing director and head of UK industrial and logistics at Hines, said: “We are pleased to have secured another prime development opportunity, in our JV with Chancerygate, for our growing light industrial mid-box portfolio on behalf of HEREP.
“We continue to target established locations with favourable supply-and-demand dynamics and will look to develop Grade A stock with strong ESG credentials.”
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