Peel and Canadian fund buy sites for £300m plan

Jeremy Greenland

Canadian investment firm Ivanhoé Cambridge is expanding its UK logistics investments through the acquisitions of four development projects via its partnership with PLP.

PLP is the trading name for Peel Logistics Management Limited.

The four sites have a combined land area of more than 52 ha (130 acres) and are located in Leeds, Sheffield, Crewe and Knowsley.

“The sites, acquired by a PLP UK logistics venture led by Ivanhoé Cambridge alongside other investors, provide the opportunity for PLP to develop over 2.6 million ft2 (240,000 m2) of logistics space, with a gross development value in excess of £300 million,” said Peel.

“PLP plans to commence speculative development on three of the sites during 2019. The delivery of the four projects is forecast for 2020 and 2021.

“These acquisitions in prime logistics areas with excellent transportation connections will enable PLP and Ivanhoé Cambridge to pursue a risk-adjusted opportunistic strategy in the UK logistics market and maximize future performance.

“These new developments complement the existing assets and increase the portfolio’s AUM (assets under management) to c.£500 million on a completed basis.”

Karim Habra, Head of Europe, Ivanhoé Cambridge, said: “We are pleased to continue the growth of our logistics portfolio in the UK alongside PLP.

“With this new acquisition of a prime development portfolio, we are on track to becoming leaders in the sector.

“This investment aligns perfectly with our global strategy to invest in high-quality logistics real estate in key hubs around the world.”

PLP CEO Jeremy Greenland said: “We are very excited about these acquisitions.

“All four sites will offer occupants a turnkey operation and provide the opportunity for PLP to deliver high-quality logistics space in a variety of configurations.

“Beyond these acquisitions, we continue to look for prime logistics developments and assets in key markets.”