Partnership to create £300m portfolio of last mile logistics sites

Trafford Park Industrial Estate

Invesco Real Estate and Barwood Capital have partnered to build a £300m portfolio of urban last mile industrial and logistics warehouses across the UK.

The partnership has acquired its first two assets that include a 5.25-acre site in Coventry and a four-acre site adjacent to Manchester’s Trafford Retail Park in order to develop a multi-unit scheme.

Through its acquisitions, it aims to create sustainable industrial portfolio through speculative development, asset management or re-positional opportunities, concentrating on locations with strong rental growth prospects and occupier demand.

As part of Invesco Real Estate’s net zero objectives, each scheme will be developed with the firm’s ESG checklist and criteria in mind.

Andy Rofe, managing director at Invesco Real Estate Europe, said: “With further pressure on global supply chains, we recognise the need for ‘edge of town’ distribution assets as many firms reshape their operations to address the challenges of the ‘just in time’ delivery model.”

“Partnering with a logistics specialist such as Barwood Capital, with their extensive UK network, industrial development and asset management expertise provides us with direct access to the UK Industrial sector, with the potential to harness the considerable forecast growth.”

Hugh Elrington, managing director at Barwood Capital, said: “We are delighted to be teaming up with Invesco Real Estate, allowing us the depth of funding to take advantage of the UK’s continued growth in this sought after sector of the market.”

Barwood and Invesco Real Estate were advised on the acquisition of Trafford Retail Park by BC Real Estate, while Carter Jonas advised on the Coventry site.