Developer Chancerygate and Hines, the global real estate investor, developer and manager, have announced a new strategic joint venture (JV) to develop multi-let urban logistics schemes.
The JV, which is being funded by Hines European Real Estate Partners III (HEREP) and has more than £1.3bn of equity commitments, has completed its first deal with the acquisition of a site in Oldham.
Chancerygate and Hines intend to speculatively develop 166,500 sq ft of Grade A sustainable urban logistics space on the 7.5-acre site.
Located at Broadway Green on the Lydia Becker Way spine road in Oldham, the site is six-and-a-half miles north east of Manchester, close to junction 21 of the M60.
The JV has acquired the last commercial site on Broadway Green. It will be Chancerygate`s second scheme there, having completed a 108,000 sq ft, development called Broadway Central in March this year.
Broadway Central is already 35 per cent let or under offer, with very strong interest in the remaining units.
Subject to planning, the new JV scheme will comprise 18 leasehold units ranging from 4,700 sq ft to 20,500 sq ft. All properties at the development will target minimum EPC rating of A and a BREEAM Excellent rating and, once complete, the scheme will have a gross development value of around £39m.
The JV acquired the site from FO Developments, which is a consortium comprising Oldham Council, Grasscroft Property and Seddon Developments, for an undisclosed sum.
Chancerygate and Hines have worked together since 2018, when the two businesses announced an equal JV partnership, targeting prime sites across the UK for high quality urban logistics developments. The previous JV invested into eight schemes and delivered around 1m sq ft of accommodation.
Commenting on the new JV, Chancerygate managing director, Richard Bains, said: “Our first joint venture partnership with Hines was extremely successful in delivering strategically located multi-let urban logistics schemes across the UK.
“We forged a highly effective working relationship during that time, so we are excited to once again partner with Hines to deliver Grade A, sustainable accommodation where it is most needed.”
Greg Cooper, managing director and head of UK industrial and logistics at Hines, added: “We are pleased to be extending our partnership with Chancerygate through this venture as we continue to scale our multi let urban logistics platform throughout the UK.
“The partnership will be well placed to meet HEREP III’s objective to execute the development of modern sustainable multi let urban logistics product in strategic urban distribution nodes.”
Founded in 1995, Chancerygate is the UK’s largest urban logistics property developer and asset manager and the only one operating nationwide.
The company currently has around 1.16m sq ft of urban logistics space under construction or ready for development across ten sites ranging from Edinburgh to Croydon.
Hines manages a combined UK commercial property portfolio worth more than £2bn and has advised on more than four million sq ft of projects acquired, completed or in the pipeline.
Chancerygate and Hines were advised on the acquisition by Davies Harrison, whilst FO Developments was advised by JLL. Davies Harrison and JLL have been appointed as lettings agents for the proposed development.
For more information, visit www.chancerygate.com.
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