Developer contractor Henry Boot has combined three sites into a joint venture (JV) to deliver industrial and logistics schemes.
Henry Boot’s development arm HBD will hold a 25 per cent share in the JV, with real estate investment firm Feldberg Capital holding the remaining 75 per cent.
The three initial sites within the Origin platform have a combined gross development value (GDV) of approximately £100m, according to a statement from Henry Boot.
The sites are:
- Spark, Walsall: A 13 acre site with a GDV of £53m, offering two units totaling 25,000 square feet near the M6 motorway.
- Inter, Welwyn Garden City: A three acre site near the A1(M), with a GDV of £27m and plans for a 6,600 square metre scheme.
- Ark, Markham Vale: Part of the flagship Markham Vale scheme, this nine acre site has a GDV of £19m and includes four units totalling 9,9400 square metres.
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.”
HBD will act as development manager, earning associated fees, while Feldberg will oversee investment management. The JV structure also includes potential performance incentives tied to the internal rate of return.
The three seed sites will deliver 41,800 square metres of prime industrial and logistics space, with construction beginning in the first half of 2025 and completion expected from the second half of the year.
All developments will aim for leading ESG standards, targeting BREEAM ‘Excellent’ and EPC ‘A’ ratings, according to a statement from the company.
In future, the platform intends to leverage Henry Boot’s development pipeline and third-party sites for further pre-let and speculative projects.
External lenders will provide development finance for each venture.
Over the next seven years, the platform aims to deliver approximately £1bn worth of high-quality industrial and logistics schemes across the UK.
HBD said it retains the option to co-invest in future projects under the same ownership split as the seed portfolio while maintaining its role as development manager.
Meanwhile, HBD has sold a purpose-built, multi-let industrial estate in Edmonton, north London to Pan-European logistics investor Valor Real Estate Partners.
Earlier this year, Henry Boot’s construction arm reported that turnover fell to £99.5m from £128.6m in the last calendar year. The firm’s profit also fell last year as its biggest projects were delayed by materials shortages.
