Investec Realis and Keir create £400m logistics JV in England
Investec Realis and Keir Property have formed a £400 million joint venture with Kier Property to develop urban logistics assets across England.
“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,” said Yon Papageorgiou, head of real estate equity investments, Investec.
The joint venture has acquired its first site, a 1.8- hectare former office site in Hemel Hempstead, in an off-market deal. The Hertfordshire site will be redeveloped and turned into a seven-unit logistics scheme with over 8,000 sq m of modern space.
In line with the objective of the joint venture and the two partners’ commitment to sustainable development, the scheme will be delivered to the highest institutional specification and is targeting a BREEAM Excellent certification.
“This first acquisition on behalf of the new joint venture with Investec is a significant opportunity to deliver a sustainable and high-quality trade and logistics development in a prime location,” said Leigh Thomas, group managing director, Kier Property. “Hemel Hempstead’s excellent connectivity, strong market yields, and established industrial base make it an ideal location for businesses looking to expand.”
The joint venture builds on Investec’s longstanding relationship with Kier and is the third between the two parties, and the first under the Realis structure. Under one of their previous joint ventures, Logistics City and Trade City, Investec and Kier Property successfully completed 13 urban logistics developments across the UK.
“This latest collaboration with Investec is a continuation of what is now a very long-standing and successful partnership,” said Thomas.
This is the first acquisition by Realis in the industrial and logistics development sector, one of its high conviction strategies alongside well-located prime offices and select living assets.
Papageorgiou said that “Kier Property is a trusted, long-term partner with a market-leading development and subsector track record, which we can leverage to access this highly granular part of the market whilst also minimising any planning and speculative development risk.”
Realis launched last year following a period of rapid repricing within select parts of the real estate market. Investec will commit equity to every acquisition alongside investors, who will benefit from its established, data-led deal origination platform, which has enabled it to build a £3 billion real estate loan book and a global network of over 150 operating partners.
