A joint venture (JV) between Chancerygate and Hines, has purchased a site in Redditch, Worcestershire to speculatively build 139,000 sq ft of Grade A urban logistics space. 

The JV has bought a 6.4 acre site intends to develop 139,000 sq ft of space across 11 leasehold units ranging from 7,685 sq ft to 15,950 sq ft. Once complete, the development will have a gross development value of around £35m.

The JV intends to develop 139,000 sq ft of space across 11 leasehold units ranging from 7,685 sq ft to 15,950 sq ft. Once complete, the development will have a gross development value of around £35m.

The site is located on Ravensbank Drive on North Moons Moat industrial estate, within close proximity to junction 3 of the M42 and the wider motorway network.

Subject to planning, the JV anticipates work starting on the proposed development by the end of 2025 with practical completion targeted for the end of the following year. The JV acquired the site from a private vendor for an undisclosed sum.

Neighbouring occupiers to the proposed development include Amazon, iForce, Lear Corporation, AMCO and a wide variety of regional and local businesses

Commenting on the acquisition, Chancerygate development manager, Rob Watts, said: “This site’s strategic gateway location into Redditch, within an established industrial area and proximity to transport links makes it the perfect opportunity for our JV with Hines.

“There is unsatisfied demand for high-specification urban logistics units across Redditch, Worcestershire and the wider West Midlands region.

“We believe our proposed development will address this through offering new, Grade A sustainable units which is fit for purpose for a range of prospective occupiers. This belief is informed by the fact we have already seen significant interest in the scheme from potential occupiers.”

Greg Cooper, managing director and head of UK industrial and logistics at Hines, added: “We are pleased to have secured another prime development opportunity, in our JV with Chancerygate, for our growing light industrial mid-box portfolio on behalf of HEREP.

“We continue to target established locations with favourable supply and demand dynamics and will look to develop Grade A stock with strong ESG credentials.”

Founded in 1995, Chancerygate is the UK’s largest urban logistics property developer and asset manager and the only one operating nationwide.

The company currently has around 1.16m sq ft of urban logistics space under construction or ready for development across 10 sites ranging from Edinburgh to Croydon.

Hines manages a combined UK commercial property portfolio worth more than £2bn and has advised on more than four million sq ft of projects acquired, completed or in the pipeline.

Chancerygate and Hines recently announced a new strategic joint venture (JV) to develop multi-let urban logistics schemes. The JV is being funded by Hines European Real Estate Partners III (HEREP) and has more than £1.3bn of equity commitments. Chancerygate and Hines were advised on the acquisition by M1 Agency and John Truslove & Co advised the vendor