Invesco Real Estate and Barwood Capital have purchased two industrial units in Birmingham, with plans in place to refurbish them and develop a total of c. 500,000ft² of logistics facilities at the site.
Constructed in 2015, the existing two freehold warehouse units currently have an EPC ‘A’ rating. Invesco has shared that it plans to implement additional ESG initiatives to improve the overall sustainability credentials with a target to achieve BREEAM ‘Excellent’.
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The additional units will be built on a 6.4-acre vacant site that has already been acquired by Invesco. These units will range from 60,000ft² to 90,000ft² in size.
Rob Johnston, managing director for UK and Nordics Investments at Invesco Real Estate, said: “Despite the occupational uncertainty of the past two years, the UK remains relatively undersupplied in terms of modern, institutional grade accommodation. The acquisition of standing units provides the opportunity to deliver an attractive spread in terms of yield-on-cost versus prime Midlands logistics yields with reduced development exposure.
“In addition, the marriage value from combining the adjacent vacant site will further consolidate this as a prime scheme. Birmingham is at the centre of the highly attractive Midlands economic region and we are excited to work with Barwood Capital on this initiative.”
Jonathon Ellerington, senior investment manager at Barwood, added: “Given the quality of the existing units, coupled with the excellent opportunity to speculatively develop further in this premier logistics location, we are thrilled to complete these acquisitions and develop this scheme with Invesco Real Estate.
“This is a location with proven occupational demand for sustainable and well-located logistics units and the refurbishment and redevelopment of these sites will serve to improve the area, while providing exceptional industrial space at a time when the market is starved of supply.”
