Hines and Chancerygate have joined forces in a 50-50 partnership which will target prime sites across the UK for high-quality urban logistics developments to meet the growing demand for last-mile logistics and owner-occupied units. The joint venture brings together the market expertise and development track record of Chancerygate with the investment, development and asset management capabilities of Hines. The partnership has already secured three sites which it intends to make announcements on soon. An initial €112.1m (£100m) has been earmarked for investment, with further funding available as opportunities arise. The formation of the joint venture follows Hines’ recent senior strategic appointment of Greg Cooper as Director of Industrial and Logistics in the firm’s London office.
“While clearly a very competitive market, the e-commerce boom shows no sign of abating and demand for high-quality, well-located warehouse and distribution centres remains strong. The potential to partner with a developer of Chancerygate’s calibre was very appealing and will help us achieve our ambitions in this space. The strength of our combined balance sheets and the speed in which we can make decisions will allow us to grow a pipeline quickly. Chancerygate’s business model of considering both freehold sales in addition to the more traditional leasing route also allows us to appeal to a wide occupier audience,” said Ross Blair, senior managing director and head of Hines UK.
He continued: “Hines UK continues to evolve as a business, adapting to an ever-changing market and making sure we are best placed to meet investor appetite across a range of asset classes. Our move into retail and student accommodation is a testimony to this, and our entry into industrial represents the next chapter of the diversification of our business.”
Chancerygate currently has more than two million ft² of space under construction or in the pipeline and is seeing continued demand for new Grade A units on both a freehold and leasehold basis. The partnership with Hines will enable it to expand its development pipeline and reaffirms the company’s position as the primary national developer of urban/last mile logistics.
Chancerygate Managing Director, Richard Bains, commented: “We are delighted to be working in a true 50/50 partnership with a counterparty such as Hines, which has repeatedly demonstrated its acumen in timing entry into sectors and geographies at the appropriate time. This joint venture will enable us to take Chancerygate to a different level and scope of operation.”