Landmark funding deal to bring forward major logistics schemes

Hines, the global property investor, has extended its joint venture with Derbyshire developer Clowes with the pair now planning to build some 1.15m sq ft of logistics space across the East Midlands.

Hines had originally agreed to forward fund the speculative development of almost 775,000 sq ft of space at four business parks across the region. The new agreement will bring forward warehousing across eight units, each of which will target BREAAM ‘Very Good’ certification. EV charging infrastructure will be installed across the portfolio, and the units are designed to support the installation of solar panels.

Hines says it has extended the agreement with Clowes are experiencing high levels of demand from occupiers looking for logistics space in the East Mildlands.

Under the original deal, some 195,000 sq ft has already been delivered by the joint venture at Dove Valley Park in South Derbyshire.

The remaining units under development by the joint venture will be completed during 2023 and include plots at Fairham Business Park, EMDC, and Castlewood Business Park.

Greg Cooper, .anaging director at Hines, said: “The expansion of our joint venture with Clowes to develop a total of 1.15 million square feet (107,000 square metres) of high-quality logistics space in the East Midlands is testament to our ongoing conviction in the logistics sector and developing best-in-class spaces that occupiers will call home.

“Within our network of customer and occupier relationships we continue to see strong nationwide occupier demand, and the Golden Triangle provides fantastic access to all of the UK within four hours by car, carving it out as a standout location.

James Richards, director at Clowes Development, added: “This expanded partnership with Hines will allow us to continue to collaborate to develop best-in-class warehousing at well located sites across the East Midlands. The expansion will unlock new opportunities within the UK’s logistics Golden Triangle, as well as in other locations benefiting from strong transport links and favourable local supply and demand drivers. We are confident that our teamwork and close collaboration will continue to bear fruit.

“As with any large-scale transactions of this nature, teamwork is essential. Deals like this come with a wealth of complexities which require a keen eye and attention to detail to ensure all aspects are executed properly. We have small group of experts here at Clowes who ensure we achieve compliance and diligence at all levels. I would also like to thank our legal team at Geldards for all their hard work and commitment to getting this deal over the line.”

Heather Dixon, partner at Geldards, said: “As the UK economy begins to rebuild and transform, logistics and warehousing will become a critical driver for growth. These new developments, delivered through an ambitious and driven collaboration puts the East Midlands at the heart of this transformation and delivers the infrastructure needed for the region to become a driving force for growth and innovation.”