UK industrial and warehouse developer Tungsten Properties has signed a JV funding agreement with investment firm BC Partners to fund development opportunity acquisitions.
The recently created JV will invest up to £250 mln (€296 mln) in single and multi-let industrial opportunities across the UK, ranging from last-mile to big box logistics warehouses with a gross development value higher than £25 mln (€29.6 mln).
Tungsten Properties will act as asset and development manager and the JV has already identified a strong project pipeline.
Jeff Penman, managing director, Tungsten Properties said: ‘This is a significant step in Tungsten’s expansion strategy to continue to deliver industrial and warehouse space to create growth, jobs and investor returns. This transformational JV agreement with BC Partners will provide reliable capital to continue delivering strategically located, sustainable buildings across the UK. While there is volatility in the capital markets, both Tungsten and BC Partners believe that the industrial market’s long-term fundamentals remain strong.’
Laurian Douin, partner, BC Partners said: ‘The UK industrial and warehouse sector has strong secular fundamentals. Given Tungsten’s strong track record and like-minded approach to development, we are thrilled to partner with them to jointly invest in this asset class. The joint venture intends to deliver well-located, exceptional schemes to meet occupier demand, with a particular focus on schemes’ environmental credentials in-line with BC Partners Real Estate’s commitment to ESG.’
Jeremy Toone of Cap Real Estate and Forsters acted on behalf of Tungsten Properties, while Fineman Ross and Greenberg Traurig LLP acted for BC Partners.
Tungsten Properties will continue to acquire development opportunities below £25 mln (€29.9 mln) through its existing revolving credit facility.
The company has developed 190 completed units, totalling more than 204,387 m2, with a gross development value of over £297 mln (€352 mln).
The project pipeline includes a 30,937 m2 pre-let warehouse in Calder Park, Wakefield; the 21,368 Super B speculative warehouse in Bradford; and the 8,640 m2 four-unit Penta Park industrial scheme, Southampton.