HBD and joint venture partner Feldberg Capital have launched a new UK I&L platform with the aim of delivering circa £1bn of industrial and logistics schemes over the next seven years.
The ‘Origin’ platform will own and develop ESG compliant I&L assets, predominantly in the mid-box market, across the UK.
HBD – the property investment and development arm of Henry Boot – holds a 25% share in the JV and Feldberg holds a 75% stake. HBD will be the development manager and Feldberg will act as investment manager.
Origin has been seeded with an initial portfolio of three sites from HBD’s pipeline which have a combined GDV of circa £100m.
The portfolio comprises Spark, Walsall – a 13-acre development site with planning for 270,000 sq ft and a GDV of £53m; Inter, Welwyn Garden City – a three-acre, £27m GDV development site with planning consent for a 71,000 sq ft I&L scheme; and Ark, Markham Vale – a nine-acre development site with a GDV of £19m and planning consent for four units totalling 107,000 sq ft.
Construction on each site is due to commence in H1 2025 and the JV partners are targeting BREEAM Excellent and an EPC A rating for all of the developments.
Going forward, the partnership will draw on HBD’s development pipeline and will acquire sites from third parties for further pre-let and speculative I&L development. For each project, development finance will be procured from an external lender.
Tim Roberts, CEO at Henry Boot, said: “The launch of this new industrial and logistics platform with Feldberg Capital is an important transaction for Henry Boot, allowing us to partner with a first-class international investor with the funds and ambition to invest alongside us into one of our key sectors.
“At the same time, it enables us to accelerate our own £1.3bn industrial and logistics pipeline and in turn recycle capital more efficiently. We now look forward to fulfilling our significant ambitions for Origin alongside the team at Feldberg.”
David Turner, managing partner at Feldberg Capital, added: “Having held back from the industrial and logistics market while assets looked overpriced, we believe now is a highly attractive entry point, with land values having come down over the last 24 months and entry yields being at more sustainable levels.
“The positive tailwinds within the sector remain, driven by structural trends including the continued growth of e-commerce and more firms serving the UK market looking to ‘onshore’ their production here in the face of a shifting regulatory and geopolitical backdrop.
“Our aim is for Origin to become a market leader in the mid-box space. We’re excited to be working together with HBD, using our tried-and-tested ESG framework to deliver the next generation of units for modern, environmentally responsible occupiers, and driving strong risk-adjusted returns for our investors in the process.”
