(LONDON) – Chancerygate and Hines’ joint venture has acquired its first two sites, totaling nine acres of land on which it will bring forward the development of 202,000 square feet of industrial units.
Located in Tonbridge and Cheltenham, both sites exchanged upon by the JV will see speculative development of multi-unit industrial and trade counter schemes.
The deals come just months after the announcement of an equal JV partnership between industrial developer and asset manager Chancerygate and the international real estate firm Hines, with the strategy of developing prime, multi-let industrial and logistics sites.
The 4.11-acre Tonbridge site on Vale Road was purchased from Morrisons supermarkets, and the proposed scheme will comprise 14 industrial units across 100,000 square feet. The site is scheduled for occupation in 2020 and is expected to have a GDV in excess of £20m. Pre-let discussions are well advanced. Bracketts acted for Chancerygate and Hines in Tonbridge and DTRE acted for Morrisons supermarkets.
In Cheltenham, the 4.91-acre site at the premier Kingsditch trading estate has been purchased off-market from global lifestyle company SuperGroup, with KBW acting for the vendor. The JV will speculatively build 15 units totaling 102,000 square feet, six of which totaling 26,000 square feet will be trade counter units. The development’s GDV is circa £16m.
Commenting on the JV’s first sites, Chancerygate managing director, Richard Bains, said: “Acquiring these sites is an important milestone in our partnership with Hines – and the first of many more to come. This is a trusted partnership and we’re already reaping the rewards of working together.
“We have a strong track record in identifying well-connected, strategic locations, often in areas that have seen a shortage of new industrial schemes, and we’re showing that this approach will also succeed through our JV model. Tonbridge has been woefully undersupplied with good quality developments and our scheme will be the town’s biggest for decades. Likewise, Kingsditch in Cheltenham is a prime destination for retailers and their customers, which fully supports our development strategy. We look forward to making more announcements on further acquisitions soon.”
Established in 1995, Chancerygate is the UK’s leading multi-let industrial property development and asset management company with offices in London, Birmingham, Warrington and Milton Keynes. It has an annual turnover of £97m and employs 37 people.
Chancerygate’s development team has more than two million square feet of industrial space under construction or ready for development. In 2018, the company invested more than £41m to acquire 10 sites comprising 37 acres.
Hines senior managing director and UK head, Ross Blair, added: “At the time of establishing our joint venture, we said we would make decisions at speed and grow a pipeline quickly. With these first site purchases, we’ve absolutely done that. Industrial developments are a vital asset class in Hines’ diversification and we’re confident investors will see rewards from the joint venture.”
Hines UK has advised on more than four million square feet of projects acquired, completed or in the pipeline. The company manages a combined UK commercial property portfolio worth more than £2bn and located in London, Manchester, Birmingham, Edinburgh and Glasgow. For more information visit www.chancerygate.com and www.hines.com.
Chancerygate is one of the UK’s leading industrial property development and asset management companies. Founded in 1995, the company has four offices across the UK in London, Birmingham, Warrington and Milton Keynes.
The company’s development team has more than two million sq ft of industrial space under construction or ready for development. Its asset management team manages more than £230m of assets across six million sq ft of commercial space in more than 400 units. In 2018, Chancerygate invested more than £41m to acquire 10 sites comprising 37 acres.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 207 cities in 24 countries. Hines has approximately $116.4 billion of assets under management, including $64 billion for which Hines provides fiduciary investment management services, and $52.4 billion for which Hines provides third-party property-level services. The firm has 109 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,319 properties, totaling over 431 million square feet. The firm’s current property and asset management portfolio includes 527 properties, representing over 224 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.
Since entering Europe in 1991, Hines has grown its European and Eurasian platforms to include a presence in eleven countries and Hines currently has €16.7 billion of assets under management in Denmark, France, Germany, Greece, Ireland, Italy, Norway, Poland, Spain and the United Kingdom.
Hines UK has advised on more than four million square feet of projects acquired, completed or in the pipeline in the UK with a total UK commercial property portfolio under management valued at in excess of £2 billion. The company’s portfolio includes a range of assets under management in London and key regional cities including Manchester, Birmingham, Edinburgh and Glasgow.