Fiera Real Estate and Universities Superannuation Scheme (USS) have teamed up to launch a UK-focused industrial platform.
USS is believed to be investing around £500m (€577m) in the joint venture (JV), according to industry sources.
The JV has an initial term of five years and is targeting individual acquisitions of up to £50m. The JV plans to develop prime small-to-mid-box industrial properties in strategically located urban locations, the partners said.
The new investment vehicle will be managed by Chris Button, head of investment management, Europe at Fiera Real Estate, and will target brownfield and established employment sites to deliver new multi-let urban industrial schemes of up to 250,000sqft.
Charlie Allen, head of European real estate at Fiera Real Estate, said: “The joint venture will leverage our unique operating partner model and our strong track record in the delivery of ground-up development projects to assemble a market-leading logistics portfolio that is exemplary from an ESG perspective, and in terms of what today’s occupiers prioritise.
“We are responding to occupier and investor demand for contemporary assets which further sustainability objectives, adding supply-chain resilience, enhanced carbon-emission profiles and future-proofing benefits to portfolios. Supply-demand imbalances, favourable pricing conditions and the digitalisation of the economy are some of the beta tailwinds driving the investment case in UK logistics, and we will be combining these with our proven ability in origination and delivery to create alpha for our investors.”
Alex Turner, head of property at USS, said: “We are looking forward to working with Fiera on this exciting joint venture. USS has a strong track record in the industrial sector, with deep sector knowledge and a £1.5bn industrial portfolio.”
The JV already has two prime sites under offer, with a gross development value of over £100m, in South East England.
Fiera and USS declined to disclose financial details.
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