Investment sale triggers midbox development
The off market sale of a multi let industrial scheme in Erdington has triggered the development of two mid box warehouses on the site.
By Liza Helps, Property Editor Logistics Matters
Real estate investment management firm Vengrove paid Federated Hermes £27.2 million for Erdington Industrial Park, which comprises 216,874 ft2 of multi-let industrial across 13 units, as well as 6.1 acres of development land, with full planning consent for two mid-box units of 42,000 and 57,750 sq ft.
Vengrove said that it expected to be on site with the midbox development by the end of Q3 this year, delivering highly specified units with best in class ESG credentials, targeting EPC A and BREEAM Excellent ratings.
Planning was secured last year by Urban Edge which saw the development as one 95,000 ft2 facility split into two units.
Located less than one mile from Junction 5 of the M6, the site was acquired on behalf of Vengrove’s second discretionary fund, VRE Opportunity Partners II.
The multi-let estate has two recently vacant units.
Will Hunting, Partner at Vengrove said: “As well as being the kind of proactive asset management opportunity that we thrive on, it also gives us the opportunity to use our vertically integrated development and project management capability to develop 100,000 sq ft of new mid-box supply in a Tier 1 UK city that has an acute shortage of this type of stock.”
Vengrove was advised by Atlas Real Estate and Greenberg Traurig. Federated Hermes was advised by TT&G Partners and Herbert Smith Freehills.
