April 4, 2022
Fiera Real Estate (“FRE UK”) and Cubex are pleased to announce the acquisition of a 4.2-acre site located three miles east of Cardiff City Centre, close to J30 of the M4.
The site was purchased through the Fiera Real Estate Opportunity Fund V UK (“FREOF V UK”), the latest fund in FRE UK’s programmatic venture series with CBRE Global Investment Managers (“CBRE IM”). This is the 16th acquisition for the Fund which reached its final close earlier this year with £180m of capital and is targeting similar sites for industrial development around the UK.
The site business plan is to secure planning and speculatively develop a 67,000 sq ft, single Grade A urban logistics unit, with a GDV of c.£9m. The scheme will target a BREEAM Excellent and EPC A rating and will include EV charging points to encourage the transition to a low carbon economy. During construction, the scheme will use low emitting or low carbon materials where possible and promote the use of locally sourced goods and materials. Energy-efficient lighting, heating and cooling systems will also be installed throughout the development to encourage reduced energy consumption.
Demand for logistics and distribution space has continued to accelerate, with a considerable lack of availability throughout the South Wales market. As occupiers seek to expand their logistics footprint across the UK, this new site presents a fantastic opportunity to create a best-in-class asset to a hugely undersupplied area.
Joe Downey, Director at Cubex, commented “I am delighted to have completed this acquisition. The site is located in the midst of Cardiff’s premier logistics hub, adjacent to DPD, UPS and Royal Mail. Our proposed scheme will set a new benchmark for high-quality of warehousing in Cardiff from an operational and sustainability perspective. We look forward to working with Cardiff Council to bring this site forward in the coming months.”
Chris Button, Fund Manager at FRE UK, commented “We are very pleased to have concluded the purchase of this well-positioned site, alongside our Operating Partner Cubex. This is the second logistics development FREOF V is undertaking with Cubex, and it will bring much-needed logistics space to an underserved market. Fiera Real Estate has considerable funds to commit to sites with similar features around the UK.”
Cubex is currently seeking to grow their industrial portfolio across the South West and South Wales. Get in touch if you have any similar sites which may be of interest.