Feldberg Capital (Feldberg) and HBD, the development and investment arm of Henry Boot, have launched a new joint venture, Origin.
A UK focused industrial and logistics platform, Origin will own and develop next generation, ESG compliant industrial and logistics assets predominantly in the mid box market. It will target c.£1 billion of high quality I&L schemes across the country over the next seven years.
The venture will be seeded with an initial portfolio of three sites from HBD’s pipeline, with a total combined GDV of c.£100 million.
The three initial sites have the potential to deliver around 450,000sq ft of prime industrial and logistics space and will all target market leading ESG credentials including BREEAM Excellent and an EPC A rating.
The schemes include the first phase of SPARK in Walsall, a 13 acre development site just off the M6 with a £53 million GDV and comprising two units totalling 270,000sq ft, and ARK a new scheme at Markham Vale. Spanning 9 acres and with consent for four units totalling 107,000sq ft, ARK is a £19 million GDV scheme and the second and final phase of HBD’s 200 acre flagship development at Markham Vale. The third seed asset is INTER, a 3 acre site in Welwyn Garden City with a £27 million GDV and planning consent for a 71,000sq ft I&L scheme.
The new platform will draw on both HBD’s development pipeline as well as acquiring sites from third parties for further pre let and speculative I&L development.
Ed Hutchinson, Managing Director of HBD, said: “We are delighted to be able to announce the launch of Origin which will strategically help HBD to expand its industrial and logistics pipeline across the UK. Feldberg Capital shares our commitment to sustainable development which will remain a priority as we bring these first developments forward, delivering high quality, BREEAM Excellent units which will appeal to ESG conscious occupiers.”
David Turner, Managing Partner at Feldberg Capital, said: “Our aim is for Origin to become a market leader in the mid box space. We’re excited to be working together with HBD, using our tried and tested ESG framework to deliver the next generation of units for modern, environmentally responsible occupiers, and driving strong risk adjusted returns for our investors in the process.
“Having held back from the industrial and logistics market while assets looked overpriced, we believe now is a highly attractive entry point, with land values having come down over the last 24 months and entry yields being at more sustainable levels. The positive tailwinds within the sector remain, driven by structural trends including the continued growth of e commerce and more firms serving the UK market looking to ‘onshore’ their production here in the face of a shifting regulatory and geopolitical backdrop.”