Fiera Real Estate and USS launch UK industrial JV

Fiera Real Estate has formed a joint venture with the UK private pension fund Universities Superannuation Scheme (USS) to develop high-quality, small- to mid-sized industrial properties in key urban locations across the UK.

Logistics

Managed by Chris Button, Fiera Real Estate's head of Investment Management, Europe, the JV will target brownfield and established industrial sites. The goal is to create new multi-let urban industrial developments, each up to 23,225 m2, with a strong emphasis on sustainability. 
The JV has an initial five-year term and plans to acquire individual sites worth up to £50 mln (€58 mln). They are currently in negotiations for two prime sites in the Southeast, with a combined gross development value exceeding £100 mln (€116 mln).
Fiera Real Estate has consistently achieved an average net internal rate of return exceeding 40% on projects sold since 2018. Its operating partner model has allowed the development of over 1.09 million m2 of space in the last five years, with a portfolio gross development value of £2.6 bn (€3.02 bn).
The operating partner model involves Fiera Real Estate's partial ownership of nine specialised property development companies. This strategy provides institutional investors with nationwide, localised coverage and enables accelerated portfolio growth through access to off-market opportunities.
Charlie Allen, head of European Real Estate, Fiera Real Estate, said: “We are responding to occupier and investor demand for contemporary assets which further sustainability objectives, adding supply chain resilience, enhanced carbon emission profiles and future-proofing benefits to portfolios. Supply-demand imbalances, favourable pricing conditions and the digitalisation of the economy are some of the beta tailwinds driving the investment case in UK logistics.”
Alex Turner, head of Property at USS, commented: “USS has a strong track record in the industrial sector, with deep sector knowledge and a £1.5bn industrial portfolio. The JV provides USS the opportunity to continue to invest in the sector, which is supported by strong tailwinds, with a partner that provides a unique platform whilst increasing our development activity in the property mandate.”
Fiera Real Estate, the European real estate division of the global asset manager Fiera Capital, was advised by Newmark.