Hines, the international real estate firm, together with its joint venture investment partner, has committed to forward fund the speculative development of a combined 772,000 square feet of logistics facilities at four business parks across the East Midlands.
The Joint Venture has acquired the freehold of all the sites from the current owner, Derbyshire-based Clowes Developments, who will develop all the facilities. Construction work will begin with immediate effect with units ready for occupation by the end of 2022.
The 12 units will be developed to a high specification, targeting a minimum BREEAM “Very Good” rating, and are spread across four existing industrial and logistics locations in the Clowes portfolio; Dove Valley Park off the A50 at Foston in Derby, Birchwood Business Park at Alfreton, Castlewood at South Normanton, and Fairham Business Park at Nottingham.
Greg Cooper, Managing Director and head of industrial & logistics at Hines UK, said: “This was a particularly attractive opportunity given the scarcity of new stock arriving on the market, which continues to see unprecedented tenant demand as the volume of transactions continue to soar, particularly for modern and fit-for-purpose units. We’re delighted to be working with Clowes who have an unparalleled track record for delivering first class industrial and logistics facilities.”
James Richards, director at Clowes Developments, said: “This deal marks another significant transaction in what is set to be a record-breaking year for the Group. We are delighted to work with Hines to deliver much needed quality logistics facility stock across the East Midlands.
“We have said it before, and we will continue to acknowledge that the success of a deal is down to teamwork. Our in-house teams at Clowes and reliable external team including legal representatives Heather Dixon and Chris Hawrylak at Geldards, David Postins our Employer’s Agent and Architect, Ben Hall at IMA Architects have played a vital role in getting this deal over the line.”
Kimmre advised Hines on the transaction.