Delin Property formed a joint venture with Kuwait Financial Centre (Markaz) to target value-add opportunities in the logistics sector. The JV has completed its first acquisition, in Kent, and will undertake an extensive refurbishment to create a Grade A distribution centre ideally suited to serving London and Southeast England.
The JV has acquired a c. 18,581m2 warehouse on the Colebrook Industrial Estate, Royal Tunbridge Wells, that has been vacated by former owner M&S. Delin Property will oversee a full refurbishment programme which will enhance the environmental credentials. The total investment will be around c. €32.1m, covering the acquisition of the c. 3.9-ha site and the capital expenditure costs of the refurbishment.
Raffi Killian, Delin Property’s Head of Investments, said: “This is an excellent start for our partnership with Markaz. We sourced this asset at an attractive entry price and have a detailed plan for it, leveraging all our team’s skills. We’re taking a dated asset with low site density in a great location that needs hands-on asset management to meet today’s occupier needs. In Markaz, we have an ideal JV partner, since it has been running a successful development strategy focused on the European industrial sector for the past seven years.”
Renovation works are due to commence in the second quarter of 2025. The refurbishment will include replacing all 24 goods doors, the dock levellers, office windows, all roof lights and smoke vents. Internally, the works include repairing the warehouse floor, stripping out and refurbishing the office space, installing new heating and cooling systems, removing all gas infrastructure and fitting LED lighting throughout.
Lisa Amin, Markaz’s Head of European Real Estate Business Development, said: “We’re delighted to be joining forces with Delin Property, which has built a strong track record in value creation in the logistics space over more than a decade. This property ticks every box for our investors, with strong occupier demand for this location, given its proximity to London and access to a major artery for cross-Channel freight traffic. We look forward to working with the Delin team on more opportunities of this type in the future.”
The Tunbridge Wells property is 56 miles south-east of central London and is close to the A21 and A26 roads, which link to the M25 London orbital motorway and the M20 to the Channel Tunnel freight terminal at Folkestone and the port of Dover.
Advising the JV on the acquisition were Newmark and CMS. BLME is the lending partner on the transaction, providing acquisition and development debt. LSH acted for vendor.
Image Source - Pexels.
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