This JV will see both parties work together to develop urban logistics assets across England.

A first site has already been secured through an off-market acquisition, which will see the JV develop a 4.4 acre former office site in Hemel Hempstead, Hertfordshire.

The aim is to redevelop this site into a seven-unit trade and logistics city scheme, providing 87,000 sq ft of industrial space. A BREEAM ‘Excellent’ certification will be targeted.

This is the third property acquisition for REALIS and it’s first in the industrial and logistics development sector.

•   The Finance Professional Show 2024: The Video
•   Investec provides £11.5m for Wentworth Estate development
•   Investec funds 397-bed Watkin Jones PBSA

“The UK urban logistics sector continues to benefit from compelling structural tailwinds, namely an increase in onshoring and e-commerce penetration, while the erosion of industrial land in major UK cities is reducing supply and underpinning attractive rental growth,” said Yon Papageorgiou, head of real estate equity investments at Investec.
 
“Kier Property is a trusted, long-term partner with a market leading development and subsector track record, which we can leverage to access this highly granular part of the market whilst also minimising any planning and speculative development risk.”

Leigh Thomas, group managing director at Kier Property, added: “This first acquisition on behalf of this new joint venture with Investec is a significant opportunity to deliver a sustainable and high-quality trade and logistics development in a prime location.

“Hemel Hempstead’s excellent connectivity, strong market yields, and established industrial base make it an ideal location for businesses looking to expand.”