Tungsten Properties and BC Partners have joined forces to invest up to £250m (€297m) to target single and multi-let industrial opportunities across the UK.

The new venture will target single and multi-let industrial opportunities ranging from last-mile to big-box logistics warehouses with a gross development value of over £25m.

Tungsten Properties, which will act as asset and development manager for the funding joint venture (JV) agreement, said it will continue to acquire development opportunities below £25m through its existing revolving credit facility.

The companies said the venture has already identified a pipeline to initially seed the partnership.

Jeff Penman, managing director, Tungsten Properties said: “This is a significant step in Tungsten’s expansion strategy to continue to deliver industrial and warehouse space to create growth, jobs and investor returns.

“This transformational JV agreement with BC Partners will provide reliable capital to continue delivering strategically located, sustainable buildings across the UK.

“While there is volatility in the capital markets, both Tungsten and BC Partners believe that the industrial market’s long-term fundamentals remain strong. With a fighting fund behind us, we look forward to securing further opportunities.”

Laurian Douin, partner, BC Partners said: “The UK industrial and warehouse sector has strong secular fundamentals. Given Tungsten’s strong track record and like-minded approach to development, we are thrilled to partner with them to jointly invest in this asset class.

“The joint venture intends to deliver well-located, exceptional schemes to meet occupier demand, with a particular focus on schemes’ environmental credentials in line with BC Partners Real Estate’s commitment to ESG.”

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