JV formed to develop multi-let urban warehousing
Developer Chancerygate and real estate investor Hines have formed a new joint venture to develop multi-let urban logistics schemes in the UK following the success of their previous partnership which saw some 1 million ft2 of floorspace delivered in eight scheme.
By Liza Helps Property Editor Logistics Matters
THE NEW joint venture, which is being funded by Hines European Real Estate Partners III (HEREP) and has more than £1.3bn of equity commitments, has completed its first deal with the acquisition of a 7.5 acre site in Oldham.
Chancerygate and Hines intend to speculatively develop 166,500 ft2 of Grade A sustainable urban logistics space on the site located at Broadway Green. Subject to planning the scheme will comprise 18 units ranging from 4,700 – 20,500 ft2.
All properties at the development will target minimum EPC rating of A and a BREEAM Excellent rating and, once complete, the scheme will have a gross development value of around £39m.
The JV acquired the site from FO Developments, which is a consortium comprising Oldham Council, Grasscroft Property and Seddon Developments, for an undisclosed sum.
Chancerygate and Hines have worked together since 2018, when the two businesses announced an equal JV partnership, targeting prime sites across the UK for high quality urban logistics developments.
Chancerygate and Hines were advised on the acquisition by Davies Harrison, whilst FO Developments was advised by JLL. Davies Harrison and JLL have been appointed as lettings agents for the proposed development.
