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Investors join forces in UK logistics project

Hugh Elrington

Partnership will develop portfolio of warehousing across country

Global real estate investment giant Invesco is to partner with Northamptonshire-based Barwood Capital to build a portfolio of urban/last mile high-quality industrial and logistics warehouses across the UK

The partnership will focus on creating sustainable industrial property through speculative development, asset management or repositional opportunities, concentrating on locations with strong rental growth prospects and occupier demand.

Organisations are adapting to the challenges of the ‘just in time’ delivery model, said Invesco Real Estate Europe managing director Andy Rofe, and the partnership has moved swiftly to acquire its first two assets: a four-acre site next to the Trafford Retail Park in Manchester and a five-acre site with consent close to the M6 at Coventry.

It is aiming to create a portfolio of up to eight schemes with assets under management worth £300 million.

Barwood Capital managing director Hugh Elrington said: “We are delighted to be teaming up with Invesco Real Estate, allowing us the depth of funding to take advantage of the UK’s continued growth in this sought after sector of the market.”

Edward Henson, director and head of transactions, added: “Demand for industrial space remains strong across the UK regions and our partnership with Invesco Real Estate allows us to use our combined expertise to unlock development and asset management opportunities and capture the supply/demand imbalance that exists in key locations.”

Barwood and Invesco Real Estate were advised on the acquisition of Trafford Retail Park by BC Real Estate, while Carter Jonas advised on the Coventry site.

“With further pressure on global supply chains, we recognise the need for ‘edge of town’ distribution assets,” said Mr Rofe. “Partnering with a logistics specialist such as Barwood Capital, with their extensive UK network, industrial development and asset management expertise provides us with direct access to the UK Industrial sector, with the potential to harness the considerable forecast growth.”