Developers have unveiled plans to create a new 500,000 sq ft logistics hub in Birmingham following a buyout deal.
US outfit Invesco Real Estate has acquired two existing industrial buildings in Vantage Way, opposite the Fort Dunlop office and hotel complex, in Castle Bromwich.
It will now work with investor and developer Barwood Capital to refurbish and extend them to meet grade A standards.
Atlanta-based Invesco Real Estate has also acquired 6.4 acres of vacant land at the same site where it plans to construct two additional units, ranging from 60,000 sq ft to 90,000 sq ft. Barwood Capital will act as the development manager on the combined scheme.
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This is Invesco Real Estate's latest move into the Castle Bromwich district after it acquired The Fort shopping park in 2021, promising to shake up the mix of uses there to reflect the changing retail landscape.
Rob Johnston, managing director of º£½ÇÊÓƵ investments at Invesco Real Estate, said: "Despite the occupational uncertainty of the past two years, the º£½ÇÊÓƵ 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 versus 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 Capital, added: "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."
