Fiera Real Estate UK and Universities Superannuation Scheme (USS) have created a joint venture to develop prime small-to-mid-box industrial properties in strategically located urban locations across the UK.
The JV, which has an initial term of five years and is targeting individual acquisitions of up to £50m, is already under offer on two prime sites in the South East with a GDV of more than £100m.
The investment vehicle will be managed by Chris Button, head of investment management, Europe at Fiera Real Estate, and will target brownfield and established employment sites to deliver new multi-let urban industrial schemes of up to 250,000 sq ft.
Charlie Allen, head of European real estate at Fiera Real Estate, said: “The joint venture will leverage our unique operating partner model and our strong track record in the delivery of ground-up development projects to assemble a market-leading logistics portfolio that is exemplary from an ESG perspective, and in terms of what today’s occupier prioritise. We are responding to occupier and investor demand for contemporary assets which further sustainability objectives, adding supply chain resilience, enhanced carbon emission profiles and future-proofing benefits to portfolios.
“Supply-demand imbalances, favourable pricing conditions and the digitalisation of the economy are some of the beta tailwinds driving the investment case in UK logistics, and we will be combining these with our proven ability in origination and delivery to create alpha for our investors.”
Alex Turner, head of Property at USS, added: “We are looking forward to working with Fiera on this exciting joint venture. USS has a strong track record in the industrial sector, with deep sector knowledge and a £1.5bn industrial portfolio. The JV provides USS the opportunity to continue to invest into the sector, which is supported by strong tailwinds, with a partner that provides a unique platform whilst increasing our development activity in the property mandate.”
Fiera Real Estate was advised by Newmark.
