Investec Bank plc (“Investec”), a leading international financial services provider, announces that Investec REALIS (“REALIS”), the equity strategy that it launched last year, has formed a joint venture with Kier Property (“Kier”), a leading property development company, to develop c. £400 million GDV of urban logistics assets across England.
This joint venture builds on Investec’s longstanding relationship with Kier and is the third joint venture 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 venture has secured its first site with the off-market acquisition of a 4.4-acre former office site in Hemel Hempstead, Hertfordshire, which will be redeveloped into a seven-unit Trade and Logistics City scheme, providing 87,000 sq. ft. of modern industrial space.
In-line with an objective of the joint venture and Kier Property’s and Investec Realis’ commitment to sustainable development, the scheme will be delivered to the highest institutional specification and is targeting BREEAM Excellent certification.
This transaction is REALIS’ third acquisition, and first in the industrial & logistics development sector, one of its high conviction strategies alongside well-located prime offices and Select Living assets.
"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.
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."
Yon Papageorgiou, Head of Real Estate Equity Investments at Investec
"This first acquisition on behalf of this new joint venture with Investec is a significant opportunity to deliver a sustainable and high-quality trade and logistics development in a prime location. Hemel Hempstead’s excellent connectivity, strong market yields, and established industrial base make it an ideal location for businesses looking to expand.
At Kier Property, we are committed to driving sustainable growth and delivering developments that meet the evolving needs of the industrial sector via a range of funding structures, and this latest collaboration with Investec is a continuation of what is now a very long-standing and successful partnership."
Leigh Thomas, Group Managing Director at Kier Property
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.