Investec REALIS secures three new urban logistics schemes with Wrenbridge

Investec Bank plc, a leading international financial services provider, announces that Investec REALIS (“REALIS”), the equity strategy Investec launched last year, has partnered with Wrenbridge, a leading UK logistics developer, to speculatively develop urban logistics assets in Greater London and the South-East. It underscores a high conviction in Europe’s dominant e-commerce centre, which has witnessed a 25% decline in the availability of industrial land since 2005¹.

Investec and Wrenbridge have secured three sites in quick succession, comprising:

• a vacant film studio production warehouse in Greenwich, which will be redeveloped into a c.40,000 sq. ft. single-let unit
• a brownfield site in Cambridge to be redeveloped into a 37,000 sq ft mid-box logistics unit
• a 47% share in the SPV owning the 8-acre Harlow Innovation Park site for a proposed 150,000 sq ft industrial / R&D focussed development. The scheme will be delivered in partnership with Buccleuch Property and Wrenbridge.

In line with Wrenbridge and Investec REALIS’ commitment to sustainable development, the schemes will be delivered to the highest institutional specification, targeting an EPC A* rating and BREEAM Excellent certification.

Wrenbridge has extensive expertise in the logistics sector having delivered 30 schemes totalling £2 billion of gross development value and is currently managing the construction of 1.5 million sq ft, with a further 500,000 sq ft in pipeline.

REALIS has now completed four transactions in the industrial & logistics development sector, one of its high conviction strategies alongside well-located prime offices and select Living assets. This latest partnership complements REALIS’ £400 million joint venture with Kier Property to develop multi-let urban logistics assets across England, which launched earlier this year.

Yon Papageorgiou, Head of Real Estate Equity Investments at Investec, commented: “Despite Greater London and the South East being Europe’s dominant last mile ecosystem, competition from higher value use classes has resulted in an acute supply demand imbalance for modern, sustainable urban logistics. In Wrenbridge we have teamed up with a trusted, longstanding partner, and their ability to source three projects at such an attractive entry price is testament to the strength of their relationships and the depth of their local market knowledge.”

Ben Coles, Chief Executive of Wrenbridge, added: “We are very excited to have teamed up with Investec to deliver three best in class sites.  The projects located in Greenwich, Cambridge and Harlow will be brought forward on a speculative basis, reflecting our belief in the occupational markets driven by a continued supply and demand imbalance.”

REALIS launched last year following a period of rapid repricing within select parts of the real estate market. REALIS intends to commit equity to every acquisition alongside investors, who will benefit from Investec’s established, data-led deal origination platform, which has enabled it to build a c. £3 billion real estate loan book and strong global network of 150+ operating partners.

¹ Centre for London, Making Space: Accommodating London's industrial future