Harworth Group has entered into a joint venture with Lancashire County Pension Fund to develop the next phase of Logistics North, delivering 564,000 sq ft of industrial units.
The joint venture, known as Multiply Logistics North, will build 10 warehouses set in 31 acres of land.
Harworth said the deal will unlock a development profit as well as realising the land value. The land will be sold to, and then developed by, Multiply Logistics North.
LCPF will fund 80% of the acquisition and development costs, with Harworth funding the remaining 20%.
Harworth will manage the development and assets for the joint venture, in return for separate development management and asset management fees.
The new commercial units will be built in three stages. The first stage will see three units, ranging from 45,000 sq ft to 64,000 sq ft, constructed by the end of December 2017, with Buckingham Group appointed as principal contractor.
The second stage will deliver six new units, ranging from 19,000 sq ft to 149,000 sq ft, during 2018, with the final unit of 131,000 sq ft to be built in the third stage. All warehouses will be available to lease once complete.
The joint venture is the seventh deal to be completed at Logistics North in the past three years, following freehold land sales to Aldi, Lidl, MBDA, Joy Global and Exeter Property Group, and Harworth’s forward funding agreement with M&G Real Estate to build two new units, Logistics 225 and Logistics 175. Whistl took a ten-year lease on Logistics 225 in January, following its practical completion a month earlier.
LCPF was advised by the Local Pension Partnership and Knight Frank Investment Management, while Harworth was jointly advised by JLL and B8 Real Estate.
Owen Michaelson, chief executive of Harworth, said: “This is an innovative and strategic partnership which will further enhance our income portfolio and support our NAV growth, as well as providing separate development and asset management fees. We look forward to working with LCPF to maximise the potential of the site for the benefit of all and delivering more high quality industrial and logistics space in the North West.”