(LONDON) – Hines, the international real estate firm, together with its joint venture investment partner, has committed to forward fund the speculative development of a combined 772,000 square feet of high-quality logistics facilities at four business parks across the East Midlands, owned by national developer, Clowes Developments.
The Joint Venture has acquired the freehold of all the sites from the current owner, Derbyshire based, Clowes Developments, who will develop of all the facilities. Construction work will begin with immediate effect with units ready for occupation by the end of 2022.
Hines has significantly grown its industrial and logistics portfolio in the UK in recent years, in keeping with the firm’s global strategy of increasing its exposure to the sector. The recent appointment of experienced construction expert Steven Preedy will see Hines push further into the development space either directly or indirectly through transactions like the one with Clowes.
The 12 units will be developed to a high specification, targeting a minimum BREEAM “Very Good” rating, and are spread across four existing industrial and logistics locations in the Clowes portfolio; Dove Valley Park off the A50 at Foston in Derby, Birchwood Business Park at Alfreton, Castlewood at South Normanton and Fairham Business Park at Nottingham.
Greg Cooper, Managing Director and Head of Industrial & Logistics at Hines UK said: “This was a particularly attractive opportunity given the scarcity of new stock arriving on the market, which continues to see unprecedented tenant demand as the volume of transactions continue to soar, particularly for modern and fit-for-purpose units. We’re delighted to be working with Clowes who have an unparalleled track record for delivering first class industrial and logistics facilities.”
James Richards, Director at Clowes Developments commented: “This deal marks another significant transaction in what is set to be a record-breaking year for the Group. We are delighted to work with Hines to deliver much needed quality logistics facility stock across the East Midlands.
“We have said it before, and we will continue to acknowledge that the success of a deal is down to teamwork. Our in-house teams at Clowes and reliable external team including legal representatives Heather Dixon and Chris Hawrylak at Geldards, David Postins our Employer’s Agent and Architect, Ben Hall at IMA Architects have played a vital role in getting this deal over the line.”
Kimmre advised Hines on the transaction.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 255 cities in 27 countries. Hines oversees investment assets under management valued at approximately $83.6 billion¹. In addition, Hines provides third-party property-level services to more than 367 properties totaling 138.3 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,486 properties, totaling over 492 million square feet. The firm has more than 171 developments currently underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world.
Since entering Europe in 1991, Hines has grown its European platform to include offices in 16 cities as well as a presence in 62 cities in 13 countries. Hines oversees investment assets under management valued at approximately €21.7 billion and provides third-party property-level services totaling 3.9 million square meters in Europe, in Austria, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.
Visit www.hines.com for more information.
1. Includes both the global Hines organization as well as RIA AUM as of 30 June 2021.
About Clowes Developments
Clowes Developments is one of the UK’s largest and strongest privately-owned property investment and development organisations, dedicated to a simple aim: to build a lasting legacy of strong, sustainable places that will enable future generations to prosper.
Charles W Clowes founded Clowes Developments in 1964, he did so on the guiding principles of honesty, integrity, passion and innovation. That DNA still runs deep throughout the company, influencing the decision-making half a century later.
The Clowes family still own and run the business, giving relief from the demands of plc shareholders and allowing the freedom to build an extensive portfolio I n creative and imaginative ways.
In its latest annual accounts, the Derbyshire-based property group recorded a turnover of £106 million and an operating profit of £26.5 million for the financial year 2019-20.
The group holds over 3,000 acres of land and 15,000 residential plots in 130 development sites across the country, including more than 50 office and business parks and several larger mixed-use sites.
LinkedIn handles: Twitter handles:
@Clowes Developments @Clowes_UK