Kuwait JV to refurbish UK warehouses
Kuwait Financial Centre (Markaz) has formed a joint venture with logistics warehouse specialist Delin Properties to refurbish warehouses in the UK.
By Liza Helps Property Editor Logistics Matters
THE JOINT venture will ‘target value-add opportunities in the logistics sector’ and has already secured a 197,276 ft2 facility on the Colebrook Industrial Estate in Tunbridge Wells in Kent which it intends to refurbish to provide a Grade A distribution centre, recently vacated by M&S, to serve London and the Southeast.
The JV is investing some £27 million covering the acquisition of the 9.8-acre site and the capital expenditure costs of the comprehensive refurbishment which will include replacing all 24 goods doors, the dock levellers, office windows, all rooflights and smoke vents. Internally, the works include repairing the warehouse floor, stripping out and refurbishing the office space, installing new heating and cooling systems, removing all gas infrastructure and fitting LED lighting throughout.
Renovation works are due to commence in the second quarter of 2025
Markaz’s Head of European Real Estate Business Development Lisa Amin said: “This property ticks every box for our investors, with strong occupier demand for this location, given its proximity to London and access onto a major artery for cross-Channel freight traffic.”
Delin Property’s Head of Investments Raffi Killian, said: “We’re taking a dated asset with low site density in a great location that needs hands-on asset management to meet today’s occupier needs. In Markaz we have an ideal JV partner, since it has been running a successful development strategy focused on the European industrial sector for the past seven years.”
The property was put on the market in June 2024 with a quoting price of £23.83 million with full vacant possession in December 2024. Built in 1997 the property has 10m eaves and 179,081 ft2 of warehouse space as well as 13,934 ft2 of two storey offices. At the time of sale the facility had an EPC Crating.
Advising the JV on the acquisition were Newmark and CMS. BLME is the lending partner on the transaction, providing acquisition and development debt. LSH acted for vendor.
