Henry Boot and Feldberg unite for logistics push
HBD, the property and development arm of Henry Boot, has teamed up with Feldberg Capital to launch a UK-focused industrial and logistics platform.
The joint venture, to be known as Origin, will focus on mid-box logistics and is seeded with an initial three sites from HBD’s pipeline. The three sites have a combined GDV of around £100m.
The initial sites have the potential to deliver approximately 450,000 sq ft of prime industrial and logistics space, with construction on each due to commence in H1 2025 for delivery from H2 2025.
HBD, the property and development arm of Henry Boot, has teamed up with Feldberg Capital to launch a UK-focused industrial and logistics platform.
The joint venture, to be known as Origin, will focus on mid-box logistics and is seeded with an initial three sites from HBD’s pipeline. The three sites have a combined GDV of around £100m.
The initial sites have the potential to deliver approximately 450,000 sq ft of prime industrial and logistics space, with construction on each due to commence in H1 2025 for delivery from H2 2025.
All developments in the new platform will target market-leading ESG credentials, including BREEAM Excellent and EPC A ratings.
The seed assets comprise:
Spark in Walsall, a 13-acre development site with a £53m GDV, just off the M6. Spark has full planning consent for phase one, which comprises two units totalling 270,000 sq ft.
Inter in Welwyn Garden City, a three-acre development site with a £27m GDV on Tewin Road near Junction 4 of the A1(M). The site has detailed planning consent for a 71,000 sq ft logistics scheme.
Ark in Markham Vale, a nine-acre development site with a £19m GDV and planning consent for four units totalling 107,000 sq ft.
Henry Boot chief executive Tim Roberts said: “The launch of this new industrial and logistics platform with Feldberg Capital is an important transaction for Henry Boot, allowing us to partner with a first-class international investor with the funds and ambition to invest alongside us into one of our key sectors.
“At the same time, it enables us to accelerate our own £1.3bn industrial and logistics pipeline and in turn recycle capital more efficiently. We now look forward to fulfilling our significant ambitions for Origin alongside the team at Feldberg.”
David Turner, managing partner at Feldberg Capital, added: “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.
“Our aim is for Origin to become a market leader in the mid-box space. We are 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.”
HBD has a 25% share of the jv, with Feldberg holding 75%. HBD will be the development manager, receiving fees for doing so, while Feldberg will act as investment manager. Both parties have the potential to share a promote fee based on the jv’s internal rate of return, subject to certain hurdle rates.
