Tungsten Properties, one of the UK’s leading industrial and warehouse developers, has signed a transformative joint venture funding agreement with BC Partners, a leading international investment firm, which will provide access to leveraged capital to fund development opportunity acquisitions.
The newly formed joint venture company will invest up to £250 million to target single and multi-let industrial opportunities across the UK, which will range from last-mile to big box logistics warehouses with a GDV of greater than £25 million. Tungsten Properties will act as asset and development manager for the joint venture.
With a strong conviction in the underlying occupational fundamentals of the industrial warehousing sector, the joint venture has already identified a strong pipeline to initially seed the partnership.
Jeff Penman, managing director, Tungsten Properties said: “This is a significant step in Tungsten’s expansion strategy to continue to deliver industrial and warehouse space to create growth, jobs and investor returns. This transformational JV agreement with BC Partners will provide reliable capital to continue delivering strategically located, sustainable buildings across the UK.
“While there is volatility in the capital markets, both Tungsten and BC Partners believe that the industrial market’s long-term fundamentals remain strong. With a fighting fund behind us, we look forward to securing further opportunities.”
Laurian Douin, partner, BC Partners said: “The UK industrial and warehouse sector has strong secular fundamentals. Given Tungsten’s strong track record and like-minded approach to development, we are thrilled to partner with them to jointly invest in this asset class. The joint venture intends to deliver well-located, exceptional schemes to meet occupier demand, with a particular focus on schemes’ environmental credentials in-line with BC Partners Real Estate’s commitment to ESG.”
Tungsten Properties will continue to acquire development opportunities below £25 million through its existing revolving credit facility.
Jeremy Toone of Cap Real Estate and Forsters LLP acted on behalf of Tungsten Properties; Fineman Ross and Greenberg Traurig LLP acted for BC Partners.