Invesco, Barwood embark on £300m logistics strategy
A four-acre plot next to Trafford Retail Park will be one of up to eight that the joint venture plans to acquire and redevelop in response to increasing demand for industrial property.
Invesco Real Estate and Barwood Capital have inked a joint venture to develop a £300m portfolio of urban/last mile industrial and logistics warehouses across the UK, focusing on “creating a sustainable industrial product through speculative development, asset management or re-positional opportunities”.
“With further pressure on global supply chains, we recognise the need for ‘edge of town’ distribution assets as many firms reshape their operations to address the challenges of the ‘just in time’ delivery model,” said Andy Rofe, managing director at Invesco Real Estate Europe.
“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.”
Hugh Elrington, managing director at Barwood Capital, added: “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.”
Invesco/Barwood plans to create a “multi-unit scheme” at the four-acre Trafford Retail Park site it acquired from Peel L&P recently.
In addition, the JV bought a five-acre site in Coventry with planning consent. Construction there is due to start this summer.
Rob Johnston, head of UK and Nordic real estate transactions at Invesco Real Estate, added: “Both the Manchester and Coventry sites are ideal schemes to kick-start the portfolio, given their prime locations.
“We have a strong pipeline of further opportunities as we work towards our aim to create a portfolio of 6-8 schemes, with an AUM of around £300m.”
Barwood and Invesco Real Estate were advised on the acquisition of the Trafford Retail Park site by BC Real Estate.
They’ll need to pay for some highway capacity improvements on Barton Rd to cope with the traffic since Aldi opened. Unless they’re using United Utilities access road.
By Vic