18th June 2024

Invesco Real Estate and Barwood to create new 500,000 sq ft prime logistics estate in Birmingham

Invesco Real Estate, the USD 88bn global real estate investment business of Invesco Ltd. (NYSE: IVZ), has partnered with Barwood Capital (Barwood), UK based real estate investment and development specialist, to refurbish and develop circa 500,000 sq ft of logistics facilities in Birmingham. The firm has acquired two existing industrial units with a view to extend and refurbish them to meet Grade A institutional standards with best-in-class ESG credentials. It has also acquired the adjacent 6.4 acres vacant site on which additional units will be built.

The acquisitions have been made on behalf of one of Invesco Real Estate’s long-standing, separate account clients. Barwood Capital will act as the development manager on the combined scheme.

The site, situated in the prime industrial sub-market of Birmingham, is located in the Midlands’ prime ‘Golden Triangle’ logistics hub, one of the UK’s main distribution centres catering to the Birmingham, pan-Midlands as well as wider UK markets providing strong rental growth prospects and excellent occupational demand.

The current on-site facilities consist of two freehold warehouse units (constructed in 2015 to then-modern, institutional specification criteria). Currently rated EPC A, additional ESG initiatives will be implemented to improve the overall sustainability credentials with a target to achieve BREEAM ‘Excellent’. Two additional units ranging from 60,000 sq ft to 90,000 sq ft will also be developed on the adjoining 6.4 acres vacant site.

The UK and European logistics markets have continued to offer compelling investment opportunities on a select basis, and Invesco Real Estate has remained active in the sector. The firm recently announced it is to develop a Grade A logistics facility at CORE Temnitzpark in Neuruppin, Greater Berlin, also for the same separate account client, and continues to look for additional opportunities across the continent.

Rob Johnston, Managing Director –UK & Nordics Investments at Invesco Real Estate, said: “Despite the occupational uncertainty of the past two years, the UK remains relatively undersupplied in terms of modern, institutional grade accommodation. The acquisition of standing units provides the opportunity to deliver an attractive spread in terms of yield-on-cost vs prime Midlands logistics yields with reduced development exposure.

“In addition, the marriage value from combining the adjacent vacant site will further consolidate this as a prime scheme. Birmingham is at the centre of the highly attractive Midlands economic region and we are excited to work with Barwood Capital on this initiative.”

Jonathon Ellerington, Senior Investment Manager at Barwood, said: 

“Given the quality of the existing units, coupled with the excellent opportunity to speculatively develop further in this premier logistics location, we are thrilled to complete these acquisitions and develop this scheme with Invesco Real Estate.

“This is a location with proven occupational demand for sustainable and well-located logistics units and the refurbishment and redevelopment of these sites will serve to improve the area, while providing exceptional industrial space at a time when the market is starved of supply.”

The letting agents are Knight Frank, Colliers and Cushman and Wakefield. Invesco Real Estate were advised on the acquisitions by Knight Frank.


About Invesco Ltd.

Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. Invesco managed USD 1.4 trillion in assets on behalf of clients worldwide as of 31 December 2023. For more information, visit www.invesco.com/corporate.

About Invesco Real Estate.

Invesco Real Estate is a global leader in the real estate investment management business with USD 87.7 billion in real estate assets under management, 614 employees and 21 regional offices across the U.S., Europe and Asia. Invesco Real Estate has a 40-year investment history and has been actively investing across the risk-return spectrum, from core to opportunistic, in equity and debt real estate strategies, and in direct and listed real estate for its c.500 institutional client relationships during this time. In Europe, Invesco Real Estate has eight offices in London, Munich, Milan, Madrid, Paris, Prague, Luxembourg and Warsaw, and 188 employees. It manages 208 assets across 14 European countries and with assets under management of USD 16.1 billion. Source: Invesco Real Estate as at 31 December 2023.

About Barwood Capital

Barwood Capital is an owner managed business founded in 2009, specialising in UK regional investment and development.  Our purpose is to innovate and unlock value, generating strong and sustainable growth. We achieve this by investing responsibly in UK regional real estate and combining nimble capital with the talents of our exceptional people and experienced partners.  We take a partnership approach and are committed to providing our investors and partners with a personalised service that leaves them feeling valued and rewarded. To date, Barwood Capital has invested over £430 million into UK regional real estate, creating over £1bn in value, with a repeat investor rate of over 80%*.

* repeated investment of pounds sterling by investors from other Barwood Capital Funds

For further information visit https://barwoodcapital.co.uk