(LONDON) — Hines, the international real estate firm, has entered into a new joint venture partnership with Chancerygate, a leading industrial developer and asset manager.
The two companies have joined forces in a 50-50 partnership which will target prime sites across the UK for high-quality urban logistics developments to meet the growing demand for last-mile logistics and owner-occupied units.
The joint venture brings together the market expertise and development track record of Chancerygate with the investment, development and asset management capabilities of Hines. The partnership has already secured three sites which it intends to make announcements on soon. An initial £100 million has been earmarked for investment, with further funding available as opportunities arise.
The formation of the joint venture follows Hines’ recent senior strategic appointment of Greg Cooper as Director of Industrial and Logistics in the firm’s London office.
In recent years Hines has embarked on a strategy of diversification in the UK, initially branching out into the retail sector and then into student accommodation—through its aparto brand and operating platform—to complement its prime UK office portfolio. Globally, Hines has been involved in the industrial sector since 1957 with recent experience in Brazil, Mexico, Poland and the Southwestern U.S.
“While clearly a very competitive market, the e-commerce boom shows no sign of abating and demand for high-quality, well-located warehouse and distribution centres remains strong. The potential to partner with a developer of Chancerygate’s calibre was very appealing and will help us achieve our ambitions in this space. The strength of our combined balance sheets and the speed in which we can make decisions will allow us to grow a pipeline quickly. Chancerygate’s business model of considering both freehold sales in addition to the more traditional leasing route also allows us to appeal to a wide occupier audience,” said Ross Blair, senior managing director and head of Hines UK.
He continued: “Hines UK continues to evolve as a business, adapting to an ever-changing market and making sure we are best placed to meet investor appetite across a range of asset classes. Our move into retail and student accommodation is testimony to this, and our entry into industrial represents the next chapter of the diversification of our business.”
Chancerygate currently has more than two million square feet of space under construction or in the pipeline and is seeing continued demand for new Grade A units on both a freehold and leasehold basis. The partnership with Hines will enable it to expand its development pipeline and reaffirms the company’s position as the primary national developer of urban/last mile logistics.
Chancerygate Managing Director, Richard Bains, commented, “We are delighted to be working in a true 50/50 partnership with a counterparty such as Hines, which has repeatedly demonstrated its acumen in timing entry into sectors and geographies at the appropriate time. This joint venture will enable us to take Chancerygate to a different level and scope of operation.”
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.
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 platform to include a presence in 55 cities in 13 countries and Hines currently has over €16.7 billion of assets under management in Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Spain and the United Kingdom.Visit www.hines.com for more information.
Chancerygate is a UK leader in industrial development and asset management. It currently has more than 2m sq ft of industrial space under construction or ready to be brought forward for development and manages more than £230m of assets across the UK.
In 2017, Chancerygate invested more than £23m acquiring 10 sites comprising 50 acres to create an ongoing development pipeline of 1m sq ft, adding to the company’s existing substantial land bank.