Invesco Real Estate has bought adjoining sites fronting the M6 by the Fort Dunlop building in Birmingham, including from Jaguar Land Rover, to unlock a 500,000-square-foot industrial refurbishment and development.
The global real estate investment business of Invesco has partnered with Barwood Capital, the UK-based investment and development specialist, to bring forward the "Golden Triangle" development. It has bought a number of industrial units directly behind the Fort Dunlop development fronting the M6 to extend and refurbish them, and bought an adjacent 6.4-acre vacant site on which additional units will be built.
The sites are on Wantage Way, with neighbouring occupiers including logistics companies DHL and Kuehne + Nagel.
The sites have not been disclosed but CoStar News understands they are Blocks H and K, which have been bought from Jaguar Land Rover, and the adjoining former Trinity Press print facility site. Block H, Vantage Way, comprises an 116,826-square-foot hub.
The acquisitions have been made on behalf of one of Invesco Real Estate’s separate account clients. Barwood Capital will act as the development manager on the combined scheme.
The site, situated in the prime industrial sub-market of Birmingham, is in the Midlands’ Golden Triangle, one of the UK’s main distribution centres catering to the Birmingham, pan-Midlands and wider UK markets.
Invesco said the site comprises two freehold warehouse units, constructed in 2015 to then-modern, institutional specification criteria. It is rated EPC A, and the partners said additional ESG initiatives will be implemented to improve the overall sustainability credentials with a target to achieve BREEAM Excellent. Two additional units ranging from 60,000 square feet to 90,000 square feet will also be developed on the adjoining 6.4-acre vacant site.
Invesco Real Estate recently announced it is to develop a Grade A logistics facility at CORE Temnitzpark in Neuruppin, Greater Berlin, also for the same separate account client, and continues to look for additional opportunities across the continent.
Rob Johnston, managing director – UK & Nordics investments at Invesco Real Estate, said in a statement: “Despite the occupational uncertainty of the past two years, the UK remains relatively undersupplied in terms of modern, institutional grade accommodation.
“In addition, the marriage value from combining the adjacent vacant site will further consolidate this as a prime scheme.”
Jonathon Ellerington, senior investment manager at Barwood, added: “This is a location with proven occupational demand for sustainable and well-located logistics units and the refurbishment and redevelopment of these sites will serve to improve the area, while providing exceptional industrial space at a time when the market is starved of supply.”
The letting agents are Knight Frank, Colliers and Cushman and Wakefield. Invesco Real Estate was advised on the acquisitions by Knight Frank. Colliers is understood to have advised Jaguar Land Rover.