Hines has expanded its joint venture with Clowes, the UK property investor and developer, to develop a total of 1.15 million square feet (107,000 square metres) of logistics space across the East Midlands in England.
The expanded joint venture will fund the development of state-of-the-art warehousing across 8 units, each of which will be developed to a high specification and target BREAAM ‘very good’ certification. EV charging infrastructure will be installed across the portfolio, and the units are designed to support the installation of solar panels.
The new facilities will service the high levels of demand Hines is experiencing among occupiers seeking logistics space in supply-constrained areas. This initiative increases the initial commitment to deliver 772,000 square feet (72,000 square metres) of logistics space across four UK business parks, which was reached in September 2021.
195,000 square feet of space (18,000 square metres) has already been delivered by the joint venture at Dove Valley Park in South Derbyshire. Located in one of the country’s most important logistics areas, Dove Valley Park allows occupiers to access a catchment of 48 million people within a four-hour drive time, with excellent connectivity via the M1, M6, A50 and A38. Müller, Meg, Futaba, Tophat, JCB, Truma and GXO are already occupiers at the Park.
The remaining units under development by the joint venture will be completed during 2023.
Greg Cooper, managing director at Hines, commented: “The expansion of our joint venture with Clowes to develop a total of 1.15 million square feet (107,000 square metres) of high-quality logistics space in the East Midlands is testament to our ongoing conviction in the logistics sector and developing best-in-class spaces that occupiers will call home. Within our network of customer and occupier relationships we continue to see strong nationwide occupier demand, and the Golden Triangle provides fantastic access to all of the UK within 4 hours by car, carving it out as a standout location.”
James Richards, director at Clowes Development, added: “This expanded partnership with Hines will allow us to continue to collaborate to develop best-in-class warehousing at well located sites across the East Midlands. The expansion will unlock new opportunities within the UK’s logistics ‘golden triangle’, as well as in other locations benefiting from strong transport links and favourable local supply and demand drivers. We are confident that our teamwork and close collaboration will continue to bear fruit.”
BentallGreenOak provided the acquisition and development financing packaging and Geldards LLP represented Clowes Developments on the transaction.