Harleyford Capital launches €117m UK urban logistics strategy

Harleyford Capital has initiated a new £100 mln (€117 mln) investment plan, the Harleyford Logistics Partnership II (HLP II), to acquire urban logistics properties across the UK.

Harleyford logistics

The company has already spent £25 mln (€29 mln) on their first three acquisitions, totalling 13,935 m2, in Manchester, Glasgow, and Sheffield.
The strategy for HLP II focuses on purchasing income-generating urban logistics assets built after 2005, primarily in major UK cities. They are looking for properties valued between £5 mln (€5.85 mln) and £20 mln (€23.4 mln), with units ranging from 1,858 m2 to 6,503 m2. The goal is to capitalise on the strong demand for logistics spaces, driven by e-commerce growth and a shortage of new developments. Harleyford also plans to improve the energy efficiency of these properties to achieve EPC A ratings.
This new venture builds on their previous successful investments, including Harleyford Logistics Partnership I and a £75 mln (€87.7 mln) development program in Watford and Borehamwood. In total, Harleyford Capital has invested around £300 mln (€350 mln) in UK urban logistics over the past two years, covering over 185,806 m2 of space.
Dean Harrison, managing director, Investments at Harleyford Capital, commented: “Following the market correction, supply-and-demand dynamics continue to support rental growth outperformance for well-located, modern urban logistics assets, particularly where development viability remains constrained. Higher and sustained interest rates are also creating compelling buying opportunities in prime locations.”