Leicester warehouse specialist launches £250m JV

Jeff Penman (Image: Tungsten Properties)

Leicester-headquartered warehouse developer Tungsten Properties has launched a £250m joint venture with global investment firm BC Partners.

The partnership will target single and multi-let industrial opportunities across the UK including logistics warehouses with a GDV of more than £25m.

Tungsten, which will act as asset and development manager, says it has already identified a strong pipeline of potential acquisitions to seed the partnership.

The firm will continue to acquire development opportunities of less than £25m through its existing revolving credit facility.

Jeff Penman, managing director at Tungsten Properties, said: “This is a significant step in Tungsten’s expansion strategy to continue to deliver industrial and warehouse space to create growth, jobs and investor returns. This transformational JV agreement with BC Partners will provide reliable capital to continue delivering strategically located, sustainable buildings across the UK.

“While there is volatility in the capital markets, both Tungsten and BC Partners believe that the industrial market’s long-term fundamentals remain strong. With a fighting fund behind us, we look forward to securing further opportunities.”

Laurian Douin, partner at BC Partners, added: “The UK industrial and warehouse sector has strong secular fundamentals. Given Tungsten’s strong track record and like-minded approach to development, we are thrilled to partner with them to jointly invest in this asset class. The joint venture intends to deliver well-located, exceptional schemes to meet occupier demand, with a particular focus on schemes’ environmental credentials in-line with BC Partners Real Estate’s commitment to ESG.”