Developer Fiera Real Estate has formed a major joint venture with the Universities Superannuation Scheme to launch a new UK-focused industrial development platform.

The partnership will see USS commit around £500m to the venture, which has been established with an initial five-year term. The joint venture will target individual acquisitions of up to £50m, focusing on the development of prime small-to-mid-box industrial assets in strategically located urban markets across the UK.

The platform will be managed by Chris Button, head of investment management for Europe at Fiera Real Estate, and will concentrate on brownfield and established employment sites. The ambition is to deliver multi-let urban industrial schemes of up to 250,000 sq ft that respond to strong occupier demand for modern, well-located space.

Fiera Real Estate said the joint venture will draw on its operating partner model and its track record in delivering ground-up development projects, with the aim of building a market-leading logistics portfolio. Sustainability will be a central theme, with schemes designed to meet high ESG standards and align with the evolving priorities of occupiers.

Charlie Allen, head of European real estate at Fiera Real Estate, said the platform is intended to address demand for contemporary industrial assets that support sustainability objectives, improve supply-chain resilience and enhance carbon performance. He added that favourable market dynamics, pricing conditions and the continued digitalisation of the economy underpin the long-term investment case for UK logistics and urban industrial property.

Alex Turner, head of property at Universities Superannuation Scheme, said the partnership builds on USS’s established presence in the industrial sector. He noted that the scheme already has a £1.5bn industrial portfolio and brings deep sector expertise to the venture.

The joint venture is already progressing, with two prime sites under offer in South East England. Together, the schemes are expected to deliver a combined gross development value in excess of £100m.

While financial terms have not been formally disclosed, the partnership signals continued confidence in the UK industrial and logistics market, particularly in well-connected urban locations where supply remains constrained.

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