Investec’s UK value-add real estate equity strategy has teamed up with Kier Property to develop £400m (€482m) worth of urban logistics assets in England.
The joint venture between Investec Realis and property developer Kier has acquired its first development site, a 4.4-acre former office property in Hemel Hempstead, Hertfordshire, for the construction of a seven-unit Trade and Logistics City scheme which will provide 87,000sqft of industrial space.
This is the third acquisition by Investec Realis since its creation a year ago, and its first in the industrial and logistics development sector.
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, whilst 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 sub-sector track record, which we can leverage to access this highly granular part of the market whilst also minimising any planning and speculative development risk.”
Leigh Thomas, group MD at Kier Property, said: “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.”
To read the latest IPE Real Assets magazine click here.
