Barwood Developments Ltd (BDL) has sold 60 per cent of its holding to clients of specialist investor and property adviser Delancey to form a new logistics joint venture. The new company will be known as db symmetry. The majority acquisition is a strategic move into the logistics sector which Delancey sees as a growth area.
“The sector currently exhibits extremely favourable supply and demand fundamentals driven by the seismic shift in retail habits,” explained BDL in a statement, adding that the “continued growth of online retailing and the increase in click-and-collect was creating a significant requirement for urban logistics space and last mile delivery”.
The creation of db symmetry now gives Barwood a proven partner for future projects and Delancey access to BDL’s significant ownership of logistics development opportunities.
BDL’s existing portfolio — concentrated along the UK’s main motorways with a cluster around the “Golden Triangle” formed by the M1 and M40 — is made up of 1,330-acres of development land with an estimated value of more than £1.4bn.
The majority of sites, with the potential to deliver 20 million square feet of distribution facilities, are expected to receive planning consent over the next four years. Barwood also has seven other projects funded by third party investors.
Under the terms of the partnership deal, Delancey’s clients will provide further funds to allow db symmetry to complete its current development pipeline. Additional investment will also allow db symmetry to “make further land purchases and exploit development opportunities”.
Tim Haden-Scott is investment director at Delancey. “We are delighted to have formed this new joint venture with Barwood, and to be entering the logistics area, particularly at such an exciting period of change in the retail market,” he said.
“Alongside the Barwood shareholders and management, Delancey has strong ambitions for this new partnership and we look forward to working together to maximise the potential of db symmetry and the existing first class management team and assets.”
db symmentry has confirmed its first managing director will be Richard Bowen. He said that having established a very successful track record of securing strategic land and delivering of logistics and industrial development, the creation of db symmetry marks a significant step forward in the evolution of both businesses.
“The strategic investment by Delancey will provide db symmetry with access to significant amounts of equity which will allow us to accelerate the bringing forward of our substantial development portfolio,” Bowen explained.
“It also provides us with a strong partner to facilitate the acquisition of new projects from the pipeline of opportunities we have identified at a very opportune point in the cycle for logistics property, which is supported by favourable supply and demand dynamics that will allow us to deliver strong returns for our investors.”
Barwood is a group of associated companies involved in the investment and development of commercial and residential property, as well as the promotion of unallocated land through the planning system. The remaining BDL companies remain unchanged and it will retain its existing management team. It will also retain control over its remaining 40 per cent shareholding.
