HBD, the property investment and development arm of Henry Boot, has formed a UK focused industrial and logistics platform in joint venture with Feldberg Capital, the specialist in rapidly scaling sustainability-focused real estate ventures in high-growth sectors.
The platform will be known as Origin, with seed assets including the first phase of SPARK, a major employment scheme in Walsall.
With a GDV of £53m, the 13-acre first phase of SPARK has full planning consent and comprises two units totalling 270,000 sq ft. Work will begin on the construction of the first phase in February 2025.
Origin, subject to market conditions, intends to deliver circa £1bn of high-quality industrial and logistics schemes across the UK over the next seven years. Alongside SPARK, two further HBD schemes will be among the seed assets; ARK, a new £19m GDV development at Markham Vale in Derbyshire, and INTER a £27m GDV development in Welwyn Garden City.
All three initial sites have the potential to deliver around 450,000 sq ft of prime industrial and logistics space, with the construction of each to commence in H1 2025 for delivery from H2 2025. All developments will target market leading ESG credentials, including BREEAM Excellent and EPC A.
The venture will draw on both HBD’s development pipeline as well as acquiring sites from third parties for further pre-let and speculative industrial and logistics development.
Ed Hutchinson, Managing Director of HBD, said: “We are delighted to be able to announce the launch of Origin which will strategically help HBD to expand its industrial and logistics pipeline across the UK.
“The first phase of SPARK is one of the seed assets within the new venture, with the first two units expected to start on site early next year. Feldberg Capital share our commitment to ESG and sustainable development and SPARK is no exception, with net zero carbon, BREEAM Excellent units ready to occupy from H2 2025.”
David Turner, Managing Partner at Feldberg Capital, said: “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 tail winds 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.”
Origin is immediately well capitalised and will own and develop next generation, ESG compliant industrial and logistics assets, predominantly in the mid box market, across the UK. The venture will be seeded with an initial portfolio of three sites from HBD’s pipeline with a combined GDV of c.£100m (HBD share: £25m).
HBD has a 25% share of the joint venture, while Feldberg Capital will hold a 75% share. HBD will be the development manager, receiving a fee for doing so, and Feldberg Capital will act as investment manager.
Shoosmiths and Linklaters advised Feldberg Capital and HBD was advised by Pinsent Masons.
