Investor ploughs nearly £30 million into spec sheds

Investec Real Estate is funding multi-unit industrial property developer Chancerygate, to the tune of £28.7 million, for the development of two speculative warehouse schemes in Peterborough and Aylesbury totalling 288,000ft2.

In Peterborough, Chancerygate will deliver 123,000ft2 of industrial, roadside and trade space, on an 8.63-acre site through a joint venture with Bridges Fund Management. The scheme is targeting a BREEAM Very Good certification. It is 15% pre-let to established businesses including Costa and Wendys. The scheme is due to complete in Q1 2023.

The second scheme, in Aston Clinton, outside Aylesbury, will comprise 165,000ft2 of industrial space across 16 units. Green initiatives include electric vehicle charging points, photovoltaic panels, and a low air permeability design. The first units will be available in Q1 2023.

Jonathan Long, Head of Corporate Real Estate, Investec, said: “The industrial sector remains a key conviction call, specifically sustainable, well-connected small and mid-box units, where there is a breadth of occupier demand underpinning an acute supply-demand imbalance.”

The UK’s industrial and logistics occupational market performed strongly in Q2, with limited new supply and more businesses seeking to future proof their operations in response to global supply chain issues. Take-up reached 16.2 million ft2, the second strongest Q2 total on record, resulting in near record low vacancy of 3.4%. Occupiers continue to focus on high-quality space with Grade A accounting for 13.1 million sq ft (78%).