Global real estate investment manager Barings, in joint venture with property developer HBD, has acquired a logistics development opportunity in Rainham, London, UK, on behalf of a pan-European value-add strategy.
Financial details were not disclosed.
The 20.5-acre (8,3 ha) site has outline planning for B1c, B2 and B8 uses and the JV plans to build a large to mid-box scheme totalling 368,000 ft2 (34,200 m2), with design and build opportunities being considered.
Darren Hutchinson, managing director, head of UK real estate transactions at Barings, commented: 'This acquisition presented us with an exciting opportunity to create a brand new, high quality logistics hub in an area with significant undersupply of suitable stock but still within close proximity to central London.
'The project also puts sustainability at its heart and we will be striving to deliver high standards in excess of the demands of modern occupiers.
'We are pleased to be partnering with HBD, who bring significant logistics development experience, and look forward to working with them on this project and hopefully again in the future.'
The redeveloped site will aim to provide new high specification, highly sustainable industrial and logistics units, including enhancements to the River Thames waterfront and cycle path. The site also presents an opportunity for river logistics with potential jetty access.
Work is due to begin next year and, once completed in 2023, is expected to have a GDV of over £100 mln (€120 mln).
Gunther Deutsch, managing director, head of real estate transactions – Europe at Barings, added: 'In our view, demand for urban logistics remains incredibly strong in the UK, with the pandemic accelerating the rise of e-commerce and consumers continue to require expediated delivery times.
'The sector remains one of our key conviction calls across Europe and across the risk spectrum, from core to value add, with developments representing a significant proportion of our activity over the last 12 months.'
Vivienne Clements, executive director at HBD, said: 'We are very pleased to be able to bring HBD’s extensive expertise within the industrial and logistics sector to this strategic partnership, and we look forward to co-investing alongside Barings to bring this new scheme forward.
'During the last year, our team has delivered over 1.1m sq. ft. of I&L space, with a future development pipeline now sitting at £1.4bn - this latest project in Rainham is a fantastic development opportunity that will inject much-needed space into the London market.'