Peel Logistics, the Manchester-based warehouse developer, has backed a new joint venture with Canadian investor Ivanhoe Cambridge.
The first fruit of the deal with be an 800,000 sq ft Sheffield warehouse. Peel will own 20 per cent of the new venture, Peel Logistics Property UK Logistics Venture (UKLV), with Ivanhoe Cambridge controlling 80 per cent.
This is the first joint venture of its kind for Peel, and extends their reach into logistics hubs across the UK. It comes in the wake of a deal between Peel and Australian investors Macquarie who launched a AUS$2bn joint venture in 2015.
Growing the business outside their North West base has long been an objective for Peel, who last year formed a partnership with niche developer Evander to expand into the Midlands.
Earlier efforts to team up with Harworth, who have a strong portfolio in Yorkshire and the Midlands, came to an end. The initial portfolio comprises three properties recently developed by Peel Logistics Property in Manchester and Liverpool and a prime development site in Sheffield with capacity for over 800,000 sq ft of lettable space.
Jeremy Greenland, Peel Logistics Property CEO, said: “With significant investment capacity and the ability to pursue development, value‐add and core investments, UKLV will be well placed to capture the opportunities and strong long‐term dynamics we see in the UK logistics.
Macquarie Capital (Europe) Limited advised Peel Logistics Property on the establishment of UKLV.
In September 2016 Peel Logistics announced the takeover of Evander Properties, adding a development pipeline of more than 3 million sq ft. Since it was founded in 2007, Evander has undertaken over 4.7 m sq ft of logistics development.
In 2016 Peel Logistics completed its first two projects: a 280,000 sq ft warehouse let to Great Bear (formerly Culina) at Port Salford and a 175,000 sq ft speculative development at Liverpool International Business Park.