Harleyford Capital has completed its first urban logistics transaction, acquiring an 8.5-acre development site in Watford, funded in a joint venture with Fiera Real Estate.
Harleyford and Fiera will seek planning permission for an £80m GDV urban logistics scheme on the site, which will be delivered speculatively.
The scheme will offer 180,000 sq ft across 13 units and Harleyford Capital will be responsible for delivery of the project.
The deal is the seventh transaction for the Fiera Real Estate Logistics Development Fund, which completed its second close in Q3 2023 with more than £225m of equity commitments.
Thomas Mallindine, managing director: asset management at Harleyford Capital, said: “We are excited to bring forward plans to deliver an ESG leading, institutional urban logistics product into a market which has seen a dearth of Grade A supply over the last cycle with a catchment of over 25 million people within a two-hour drive-time. We look forward to preparing a planning application this year and to commence development as soon as possible.”
Charlie Allen, head of European real estate at Fiera Real Estate, added: “We are pleased to have exchanged this transaction alongside Harleyford Capital and today’s deal, which we expect to be the first of many, demonstrates their capabilities and experience, and we look forward to supporting the team with their growth aspirations going forwards.”
Dean Harrison, managing director: investments at Harleyford Capital, said: “The value proposition in UK logistics has been bolstered by the market correction and we continue to source attractive off-market logistics deals for our partners and investors.”
Harleyford Capital and Fiera were advised by CBRE and Taylor Wessing. The vendor was advised by David Charles Property Consultants and Perry Holt Property Consultants.
