Joint Venture

Henry Boot and Feldberg Capital announce launch of Origin mid-box industrial & logistics platform seeded with c.£100m development portfolio

Henry Boot announces that HBD, the group's property investment and development arm, has formed a UK focused industrial and logistics ("I&L") platform, in joint venture (JV) with Feldberg Capital ("Feldberg"), the specialist in rapidly scaling sustainability-focused real estate ventures in high growth sectors. The platform will be known as Origin.

Origin is immediately well capitalised and will own and develop next generation, ESG compliant I&L assets, predominantly in the mid box market, across the UK. The venture will be seeded with an initial portfolio of three sites from HBD's pipeline with a combined GDV of c.£100m (HBD share: £25m).

HBD has a 25% share of the JV and Feldberg will hold a 75% share. HBD will be the development manager, receiving fees for doing so, and Felberg will act as investment manager. Both parties have the potential to share a promote fee based on the JV's internal rate of return subject to certain hurdle rates.

The three initial sites have the potential to deliver approximately c.450,000 sq ft of prime I&L space, with construction on each due to commence in H1 2025 for delivery from H2 2025. All developments will target market leading ESG credentials, including BREEAM 'Excellent' and an EPC 'A' rating. The seed assets comprise:

• Spark, Walsall (phase one), a 13-acre development site with a £53m GDV, just off the M6. Spark has full planning consent for phase one, which comprises two units totalling 270,000 sq ft.
• Inter, Welwyn Garden City, a three-acre development site with a £27m GDV on Tewin Road near Junction 4 of the A1(M). The site has detailed planning consent for a 71,000 sq ft I&L scheme.
• Ark, Markham Vale, a nine-acre development site with a £19m GDV and planning consent for four units totalling 107,000 sq ft. This marks the second phase of HBD's 200-acre flagship I&L scheme at Markham Vale.

Going forward, the partnership will draw on both HBD's development pipeline as well as acquire sites from third parties for further pre-let and speculative I&L development. For each project, development finance will be procured from an external lender. The intention, subject to market conditions, is to deliver c.£1bn of high quality I&L schemes across the UK over the next seven years. HBD has the right to co-invest in future projects on the same ownership split as the seed portfolio, whilst retaining the role of development manager.

Tim Roberts, CEO at Henry Boot, commented: "The launch of this new industrial and logistics platform with Feldberg Capital is an important transaction for Henry Boot, allowing us to partner with a first-class international investor with the funds and ambition to invest alongside us into one of our key sectors. At the same time, it enables us to accelerate our own £1.3bn industrial and logistics pipeline and in turn recycle capital more efficiently. We now look forward to fulfilling our significant ambitions for Origin alongside the team at Feldberg."

David Turner, Managing Partner at Feldberg Capital, said: "Having held back from the industrial and logistics market while assets looked overpriced, we believe now is a highly attractive entry point, with land values having come down over the last 24 months and entry yields being at more sustainable levels. The positive tailwinds within the sector remain, driven by structural trends including the continued growth of e-commerce and more firms serving the UK market looking to 'onshore' their production here in the face of a shifting regulatory and geopolitical backdrop.

"Our aim is for Origin to become a market leader in the mid-box space. We're excited to be working together with HBD, using our tried-and-tested ESG framework to deliver the next generation of units for modern, environmentally responsible occupiers, and driving strong risk-adjusted returns for our investors in the process."

henryboot.co.uk

About Feldberg Capital GmbH

Feldberg Capital GmbH is an owner-managed real estate investment manager with offices in London, Frankfurt am Main and Berlin. Its clients include institutional investors, family offices, and high-net-worth individuals. The range of services provided spans investment and financing advice, portfolio structuring, asset and development management, and implementation of exit strategies. The company is led by four managing partners, Rodney Bysh, Andreas Quint, David Turner and Will Amies.

The largest shareholder of the company is ESAS Holding. Established in 2000, ESAS is a global multi-asset manager and wealth management service provider with strong capabilities in alternatives, operating from three offices in Istanbul, London and Frankfurt.

feldberg-capital.com