Delancey has bought a 60% stake in Barwood Developments to create a new joint venture developer.
The jv will have a 1,330-acre landbank with an expected development value of more than £1.4bn.
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Delancey has bought a 60% stake in Barwood Developments to create a new joint venture developer.
The jv will have a 1,330-acre landbank with an expected development value of more than £1.4bn.
The new company, to be called db symmetry, pairs the financial clout of Delancey and its clients with the industrial development expertise of Barwood.
Most of the portfolio is located in the golden triangle area around the M1 and M40.
Delancey said it had acquired the 60% stake as a strategic move to access the logistics sector, which it sees as a growth area over the next decade.
A statement from the company said the industrial sector “currently exhibits extremely favourable supply and demand fundamentals driven by the seismic shift in retail habits, in particular the continued growth of online retailing and the increase in click and collect creating a significant requirement for urban logistics space and last mile delivery”.
Under the terms of the deal, Delancey has committed to provide further fire power to allow the joint venture to bring forward its existing landbank.
It will also finance growth through the acquisition of new strategic land and development opportunities.
Tim Haden-Scott, investment director of Delancey, said: “Alongside the Barwood shareholders and management, Delancey has strong ambitions for the new jv and we look forward to working together to maximise the potential of db symmetry and the existing first class management team and assets.”
Barwood chief Richard Bowen will become managing director of db symmetry. He added: “The strategic investment by Delancey will provide db symmetry with access to significant amounts of equity, which will allow us to accelerate the bringing forward of our substantial development portfolio.
“It also provides us with a strong partner to facilitate the acquisition of new projects from the pipeline of opportunities we have identified at a very opportune point in the cycle for logistics property, which is supported by favourable supply and demand dynamics that will allow us to deliver strong returns for our investors.”
jack.sidders@estatesgazette.com
