Henry Boot Developments (HBD), the property investment and development arm of Henry Boot, has announced a joint venture with Feldberg Capital to establish a new industrial and logistics platform named Origin.
The venture aims to deliver next-generation, ESG-compliant assets across the UK, with a particular focus on the mid-box market.
Origin will launch with an initial portfolio valued at approximately £100m, comprising three sites sourced from HBD’s development pipeline.
HBD holds a 25% stake in the joint venture and will act as development manager, while Feldberg Capital, with a 75% share, will serve as investment manager.
Both parties stand to benefit from promote fees tied to the joint venture’s internal rate of return, subject to hurdle rates.
The seed portfolio includes Spark in Walsall, a 13-acre site with a gross development value (GDV) of £53m.
Spark has received full planning consent for its first phase, which includes two units totaling 270,000ft2, located near the M6 motorway.
Another site, Inter in Welwyn Garden City, features a three-acre plot with a £27m GDV and planning permission for a 71,000ft industrial and logistics scheme.
The third project, Ark at Markham Vale, is a nine-acre development with a GDV of £19m, forming the second phase of HBD’s flagship 200-acre logistics scheme.
The site has planning consent for four units totalling 107,000ft.
Construction on all three sites is set to begin in the first half of 2025, with completion expected from the second half of the year.
The developments will adhere to stringent ESG standards, targeting BREEAM ‘Excellent’ certifications and EPC ‘A’ ratings.
Looking ahead, the joint venture will expand its portfolio by leveraging HBD’s existing development pipeline and acquiring additional sites from third parties.
The partnership aims to deliver £1bn worth of high-quality industrial and logistics schemes over the next seven years, funding each project with external development finance.
HBD will retain the option to co-invest in future projects under the same ownership split.
Tim Roberts, CEO of Henry Boot, said: “This collaboration allows us to accelerate our £1.3bn industrial and logistics pipeline while partnering with a first-class international investor.
“Origin is a significant step forward in enhancing our capital efficiency and delivering sustainable, high-quality developments across the UK.”
David Turner, managing partner at Feldberg Capital, noted that the current market conditions, characterised by reduced land values and sustainable entry yields, offer an attractive entry point for investment.
Turner also highlighted structural drivers, including the ongoing growth of e-commerce and the trend toward onshoring production in the UK, as key factors underpinning the sector’s resilience.
