Hines and Clowes expand venture to develop 1.15m sq ft of best in class logistics space

Hines, a global real estate investment, development, and property manager, in response to continued demand from global occupiers, continues to grow its logistics development presence in the UK and Europe via the expansion of its joint venture with Clowes, the UK property investor and developer, to develop a total of 1.15 million square feet (107,000 square metres) of modern, leading-edge logistics space across the East Midlands in England.

The expanded joint venture will fund the development of state-of-the-art warehousing across 8 units, each of which will be developed to a high specification and 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.

The new facilities will service the high levels of demand Hines is experiencing among occupiers seeking logistics space in supply-constrained areas. This initiative increases the initial commitment to deliver 772,000 square feet (72,000 square metres) of logistics space across four UK business parks, which was reached in September 2021.

195,000 square feet of space (18,000 square metres) has already been delivered by the joint venture at Dove Valley Park in South Derbyshire. Located in one of the country’s most important logistics areas, Dove Valley Park allows occupiers to access a catchment of 48 million people within a four-hour drive time, with excellent connectivity via the M1, M6, A50 and A38. Müller, Meg, Futaba, Tophat, JCB, Truma and GXO are already occupiers at the Park.

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, managing director at Hines, commented:

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 4 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:

We were delighted to continue our productive relationship with Hines and Clowes and complete the complex funding deal that now enables this exciting development to progress. 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.