Invesco Real Estate is partnering with Barwood Capital (Barwood) to refurbish and develop circa 500,000 sq ft of logistics space in Birmingham.
Invesco has acquired two existing units, which will be extended and refurbished to achieve a BREEAM Excellent rating, and an adjacent 6.4-acre vacant site, on which two additional units ranging from 60,000 sq ft to 90,000 sq ft will be built, on Vantage Way in Birmingham.
The acquisitions have been made on behalf of one of Invesco’s separate account clients and Barwood Capital will act as the development manager on the scheme.
Rob Johnston, managing director – UK and Nordics investments at Invesco Real Estate, said: “Despite the occupational uncertainty of the past two years, the UK remains relatively undersupplied in terms of modern, institutional grade accommodation. The acquisition of standing units provides the opportunity to deliver an attractive spread in terms of yield-on-cost vs prime Midlands logistics yields with reduced development exposure.
“In addition, the marriage value from combining the adjacent vacant site will further consolidate this as a prime scheme. Birmingham is at the centre of the highly attractive Midlands economic region and we are excited to work with Barwood Capital on this initiative.”
Jonathon Ellerington, senior investment manager at Barwood, added: “Given the quality of the existing units, coupled with the excellent opportunity to speculatively develop further in this premier logistics location, we are thrilled to complete these acquisitions and develop this scheme with Invesco Real Estate.
“This is a location with proven occupational demand for sustainable and well-located logistics units and the refurbishment and redevelopment of these sites will serve to improve the area, while providing exceptional industrial space at a time when the market is starved of supply.”
The letting agents for the site are Knight Frank, Colliers and Cushman & Wakefield. Invesco Real Estate was advised on the acquisitions by Knight Frank.
