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:
1. 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.
2. 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.
3. 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."
END
Notes to
editors
Henry Boot is one of the UK's
leading land, property development, home building and construction
businesses - and we've been transforming land and spaces since
1886. Listed on the London Stock Exchange since 1919, we're
renowned for quality, expertise, delivery and a partnership
approach across the group - which comprises, Hallam Land, HBD,
Stonebridge, Henry Boot Construction, Banner Plant and Road
Link.
Operating across the UK, and
employing over 500 people, we focus on three key markets: urban
development, industrial and logistics and residential. Hallam Land
has facilitated 52,000 new homes since 1990, managing one of the
top five largest land portfolios in the country, with the potential
to facilitate over 100,000 homes. HBD manages a development
pipeline of £1.3bn, the equivalent of 7m sq ft of developments
across our key markets, while maintaining a £113m investment
portfolio, of which 73% of the properties have an EPC rating of 'C'
or higher. Stonebridge, our jointly-owned home building business,
manages a land portfolio capable of delivering 1,500 homes, with an
ambition to deliver up to 600 new homes a year.
Henry Boot Construction has
extensive experience in both the public and private sectors,
including major projects such as the £200m regeneration of Barnsley
town centre, and The Cocoa Works, a £57m residential development in
York. For over 65 years, Banner Plant has supplied construction
products and services, operating from seven regional depots in the
North of England.
We have also developed an ambitious
Responsible Business Strategy to help us meet our aim of being Net
Zero Carbon by 2030, and to deliver, by 2025, charitable, community
and education work valued at £1m.
From land promotion, property
development and investment to home building, construction and plant
hire, Henry Boot is where great places start.
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
Enquiries
FTI
Consulting
Richard Sunderland/Giles
Barrie
07894 797067 / 07798
926814
henryboot@fticonsulting.com
Henry Boot PLC
Tim Roberts, Chief Executive
Officer
Darren Littlewood, Chief Financial
Officer
Daniel Boot, Senior Corporate
Communications Manager
07825 088807
dboot@henryboot.co.uk
henryboot.co.uk
Deutsche Numis
Joint Corporate Broker
Ben Stoop
0207 260 1000
Peel Hunt LLP
Joint Corporate Broker
Ed Allsopp / Pete Mackie
0207 418 8900
For
Feldberg Capital:
SEC
Newgate
Henry Columbine / James
Carnegie
+44 (0)7287 486224
feldberg@secnewgate.co.uk
