UK developer Chancerygate and global private developer-investor Hines have announced a new strategic joint venture (JV) to develop multi-let urban logistics schemes.
The JV, which is being funded by Hines European Real Estate Partners III (HEREP) and has more than £1.3 bn (€1.5 bn) of equity commitments, has completed its first deal with the acquisition of a site in Oldham, near Manchester.
Chancerygate and Hines intend to speculatively develop 166,500 ft2 of Grade A sustainable urban logistics space on the 7.5-acre site.
The JV has acquired the last commercial site on Broadway Green. It will be Chancerygate`s second scheme there, having completed a 108,000 ft2, development called Broadway Central in March this year.
Broadway Central is already 35% let or under offer, with very strong interest in the remaining units.
Subject to planning, the new JV scheme will comprise 18 leasehold units ranging from 4,700 ft2 to 20,500 ft2. All properties at the development will target minimum EPC rating of A and a BREEAM Excellent rating and, once complete, the scheme will have a gross development value of around £39 mln.
The JV acquired the site from FO Developments, which is a consortium comprising Oldham Council, Grasscroft Property and Seddon Developments, for an undisclosed sum.
Chancerygate and Hines have worked together since 2018, when the two businesses announced an equal JV partnership, targeting prime sites across the UK for high quality urban logistics developments. The previous JV invested into eight schemes and delivered around 1m ft2 of accommodation.
Commenting on the new JV, Chancerygate managing director, Richard Bains, said: 'Our first joint venture partnership with Hines was extremely successful in delivering strategically located multi-let urban logistics schemes across the UK. We forged a highly effective working relationship during that time, so we are excited to once again partner with Hines to deliver Grade A, sustainable accommodation where it is most needed.'
Greg Cooper, managing director and head of UK industrial and logistics at Hines, added: 'The partnership will be well placed to meet HEREP III’s objective to execute the development of modern sustainable multi let urban logistics product in strategic urban distribution nodes.'
Founded in 1995, Chancerygate is a major UK urban logistics property developer and asset manager. The company currently has around 1.16 million ft2 of urban logistics space under construction or ready for development across ten sites ranging from Edinburgh to Croydon.
Hines manages a combined UK commercial property portfolio worth more than £2 bn and has advised on more than four million ft2 of projects acquired, completed or in the pipeline.
Chancerygate and Hines were advised on the acquisition by Davies Harrison, whilst FO Developments was advised by JLL. Davies Harrison and JLL have been appointed as lettings agents for the proposed development.
