The new venture has secured its first site with the off-market acquisition of a 4.4-acre former office site in Hemel Hempstead, Hertfordshire, which will be redeveloped into a seven-unit Trade and Logistics City scheme, providing 87,000 sq ft of modern industrial space.

Yon Papageorgiou, Head of Real Estate Equity Investments at Investec said: “The UK urban logistics sector continues to benefit from compelling structural tailwinds, namely an increase in onshoring and e-commerce penetration, whilst the erosion of industrial land in major UK cities is reducing supply and underpinning attractive rental growth.

“Kier Property is a trusted, long-term partner with a market leading development and subsector track record, which we can leverage to access this highly granular part of the market whilst also minimising any planning and speculative development risk.”

Leigh Thomas, Group Managing Director at Kier Property added: “This first acquisition on behalf of this new joint venture with Investec is a significant opportunity to deliver a sustainable and high-quality trade and logistics development in a prime location. Hemel Hempstead’s excellent connectivity, strong market yields, and established industrial base make it an ideal location for businesses looking to expand.

“At Kier Property, we are committed to driving sustainable growth and delivering developments that meet the evolving needs of the industrial sector via a range of funding structures, and this latest collaboration with Investec is a continuation of what is now a very long-standing and successful partnership.”