Chancerygate and Hines combine in £100m JV
International real estate firm Hines has entered into a joint venture partnership with industrial developer Chancerygate, a prolific operator in the region, with an initial £100m earmarked for investment.
The two companies have joined forces in a 50:50 partnership which will target prime sites across the UK to meet the growing demand for last-mile logistics and owner-occupied units.
The partnership said that it has already secured three sites which it intends to make announcements on soon. An initial £100m has been earmarked for investment, with further funding available as opportunities arise.
Hines recently appointed Greg Cooper as director of industrial and logistics in the firm’s London office, a strategic hire to escalate its activities in the sector. Hines, more often associated with offices, has in recent years branched out into UK retail and student space.
Ross Blair, senior managing director and head of Hines UK, said: “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,”
Chancerygate currently has more than 2m sq ft of space under construction or in the pipeline and remains one of the North West’s most active developers.It is pressing ahead with speculative development on the first phase of a 284,000 sq ft project in Knutsford, while the year has also seen it developing an SME-focused 100,000 sq ft second phase at Satellite Park, Oldham and pre-selling several units at Eaton Point, Chorley.
Managing director Richard Bains said Hines “has repeatedly demonstrated its acumen in timing entry into sectors and geographies at the appropriate time.”