September 2024 marks the beginning of a significant development in the UK’s logistics sector as Invesco Real Estate, the $90 billion global real estate investment arm of Invesco Ltd. (NYSE: IVZ), teams up with GARBE Industrial Real Estate GmbH to develop a state-of-the-art logistics site in Worksop, East Midlands.
A Strategic Partnership for a Strategic Location
In a joint venture that underscores the importance of the East Midlands as a prime logistics market, Invesco Real Estate and GARBE Industrial Real Estate have announced plans to develop a 550,000 square foot Class A logistics site in Worksop. This ambitious project will consist of two cutting-edge facilities, one spanning 462,500 square feet and the other 86,500 square feet, strategically spread across a 28.9-acre site. Construction is set to begin in September 2024, with completion expected by the third quarter of 2025.
The logistics hub is designed to meet the highest sustainability standards, targeting BREEAM Excellent and EPC A+ ratings, which reflect the partners’ commitment to environmental responsibility and energy efficiency.
Prime Location in the East Midlands
Worksop’s strategic location in the East Midlands is one of the key factors behind this development. The site is perfectly situated to serve a vast catchment area, with approximately 3 million people living within a 45-minute drive. Major cities such as Manchester, Birmingham, Nottingham, and Sheffield are all within a two-hour drive, making the site an ideal logistics hub for companies looking to optimize their distribution networks.
The site benefits from its proximity to the UK’s national motorway network, positioned equidistant between the M1 and A1(M) motorways, ensuring easy access to major transportation routes across the country.
Meeting Market Demand with Speculative Development
Chris Hornung, Country Head & Managing Director at GARBE UK, emphasized the strategic value of this development: “This is an excellent opportunity to capitalize on the dearth of supply of large logistics units of 450,000 square feet plus in the region. This development is in line with our strategy to speculatively develop in undersupplied markets with the added benefit of Worksop providing occupiers with a strong labour pool.”
This development addresses the critical shortage of large-scale logistics units in the region, offering businesses modern, flexible spaces designed to accommodate the growing demands of the logistics and industrial sectors.
Expanding Invesco’s Logistics Portfolio
For Invesco Real Estate, this joint venture with GARBE represents a significant addition to their already extensive UK and European logistics portfolio. Rob Johnston, Managing Director – Head of Investments, UK & Nordics at Invesco Real Estate, expressed his enthusiasm: “We’re delighted to be partnering with GARBE to secure this rare opportunity to acquire a prime logistics site in the East Midlands and to further expand our UK and European logistics portfolio.”
The partnership with GARBE, which manages approximately €10.6 billion in assets across Europe, aligns with Invesco’s strategy of investing in high-quality logistics assets in key markets.
Advisors and Letting Agents
The joint venture has received expert advice from Atlas Real Estate, while Carter Jonas, DTRE, and Moriarty & Co have been appointed as joint letting agents for the development. Their involvement will be crucial in attracting top-tier occupiers to this prime logistics site.
The Invesco Real Estate and GARBE Industrial Real Estate joint venture marks a significant milestone in the UK’s logistics sector. The development of this Class A logistics site in Worksop will not only meet the growing demand for large-scale logistics facilities but also contribute to the economic vitality of the East Midlands region. With construction set to begin in September 2024, this project is poised to become a key logistics hub in the UK, benefiting from its strategic location, state-of-the-art design, and strong market demand.
