Global real estate investment, development, and property manager, Hines, is banking the development on 1.15 million ft2 of new logistics space in the East Midlands for long term growth via the expansion of its joint venture with UK property developer Clowes.
Hines said the move is in response to continued demand from global occupiers looking for space in the UK. The joint venture is looking to develop 8 units totalling 1.15 million ft2 across four schemes in the East Midlands during 2023.
The units 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. Greg Cooper, managing director at Hines, commented: “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: “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.”
This initiative increases the initial commitment to deliver 772,000ft2 of logistics space across four UK business parks, which was reached in September 2021.
Around 195,000ft2 of space has already been delivered by the joint venture at Dove Valley Park in South Derbyshire. The remaining units under development by the joint venture will be completed during 2023.
BentallGreenOak provided the acquisition and development financing packaging and Geldards LLP represented Clowes Developments on the transaction.