Vengrove has completed the acquisition of Erdington Industrial Park, Birmingham, from Federated Hermes, for £27.2m.
The asset was acquired on behalf of Vengrove’s second discretionary fund, VRE Opportunity Partners II.
It is located less than one mile from Junction 5 of the M6 in urban Birmingham and comprises 216,874 sq ft of multi-let industrial across 13 units, as well as 6.1 acres of development land.
The multi-let estate provides multiple asset management opportunities, including two recently vacant units, and the development land has full planning consent for two mid-box units of 42,000 and 57,750 sq ft.
Vengrove expects to be on site with the mid-box development by the end of Q3 this year, delivering highly specified units with best in class ESG credentials, targeting EPC A and BREEAM Excellent.
Will Hunting, Partner at Vengrove, commented “We are delighted to have completed the first close of our second discretionary fund and subsequently to have completed this transaction. This demonstrates our ability not only to raise and deploy institutional capital, but also to deploy that capital into an off-market transaction in an investment market that is currently very tight on the supply side. As well as being the kind of proactive asset management opportunity that we thrive on, it also gives us the opportunity to use our vertically-integrated development and project management capability to develop 100,000 sq ft of new mid-box supply in a Tier 1 UK city that has an acute shortage of this type of stock.”
Vengrove was advised by Atlas Real Estate and Greenberg Traurig. Federated Hermes was advised by TT&G Partners and Herbert Smith Freehills.