Urban logistics JV launched

By Liza Helps Property Editor Logistics Matters

THE JV has secured its first scheme with an office to industrial development in Hemel Hempstead which Logistics Matters reported on last week.

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.

The Hemel Hempstead acquisition of the ThePeopleBuilding in an off market deal from Aviva Investors will see the redevelopment of the  former office building to provide  a seven-unit Trade and Logistics City scheme, providing 87,000 ft2 of modern industrial space on a 4.4 acre plot. The development will target a BREEAM Excellent certification.

Investec, Head of Real Estate Equity Investments Yon Papageorgiou, 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. 

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 Investec’s established, data-led deal origination platform, which has enabled it to build a c.£3 billion real estate loan book and strong global network of 150+ operating partners.