Investec Real Estate has provided Hines’ European Value Fund 2 (HEVF2) with financing to complete the acquisition of four multi-let industrial estates in the West Midlands.
Acquired from LondonMetric Property, the portfolio comprises 47 units, which are a mix of light industrial, trade and mid-box warehouses, totalling 434,000 ft2. Three of the estates are near Birmingham City Centre, while the fourth is in Rugby.
Recent Savills research has highlighted a resurgence in occupier interest in West Midlands logistics space. Prime rents remain robust, and this is expected to continue while there is less than a year’s worth of Grade A supply.
Mike Russell at Investec Real Estate, said: 'This latest transaction reflects our long-standing strategy of backing best-in-class borrowers investing in asset classes with attractive growth prospects. We are increasingly financing schemes where a programme of capital expenditure aimed at enhancing sustainability credentials will be delivered.
'The West Midlands is a key industrial market, which benefits from excellent transport connectivity. This makes it highly attractive to occupiers requiring access to a significant population in a short drive time. This is our second deal with Hines, which reflects our approach of working with repeat borrowers and building long-term partnerships.'
Paul White, senior managing director at Hines and fund manager for HEVF 2 said: 'We are delighted to deepen our relationship with Investec through this transaction.
'The UK multi-let industrial space is a high conviction investment theme for the Hines’ value fund series and this acquisition is another sign of our intent to aggregate a significant, balanced and diversified portfolio in this space, in this particular phase of the market.'
