Hines bolsters UK industrial footprint with mid-box acquisition

Hines has expanded its UK industrial property holdings by purchasing four mid-sized warehouses in Greater London and the Midlands.

Logistics - Hines

These newly acquired properties, fully leased to logistics and e-commerce companies, are now part of Hines European Property Partners' (HEPP) UK portfolio. Including four similar acquisitions from the past six months, HEPP's mid-box portfolio in the UK is now worth around £150 mln (€175 mln) and consists of eight properties. This also contributes to Hines' broader €1 bn UK industrial and logistics portfolio.

Hines' strategy focuses on acquiring income-generating urban logistics properties in key population centres. They aim for assets priced below the cost of building new ones, with the potential for rent increases.

According to Hines Research, the European logistics market is experiencing growth driven by factors such as increased trade within the region, localized supply chains, limited new construction, and low vacancy rates. These conditions are expected to support rising rents for well-located warehouses that can cut down on transport times and supply chain expenses.

Ross Blair, head of Western Europe at Hines, said: “Occupiers continue to prioritise well‑located, dependable space in urban servicing locations, and we have a strong conviction in this theme. Continuing to aggregate our mid‑box portfolio lets us focus on a sector with strong fundamentals, where our hands‑on operating model helps drive long‑term value.”

Chiang Ling Ng, global co-head of Investment Management at Hines, added: “Nearshoring and deglobalization are reshaping supply chains across Europe, and the importance of logistics assets located close to end markets continues to grow,” said “These assets benefit from strong fundamentals, supported by attractive value at entry, proximity to population centres, and functionality that meets occupier needs.”