Kier Property has launched a new joint venture (JV) with financial services giant Investec Bank to develop urban logistics assets with a gross development value of £400m.
The new Investec Realis JV announced its first project would be turning a 4.4-acre former office site in Hemel Hempstead, Hertfordshire, into a seven-unit trade and logistics park, providing 8,100 square metres of modern industrial space.
Kier Property group managing director Leigh Thomas said: “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.”
In a statement, the JV said the project would be delivered to the highest institutional specification and is targeting BREEAM Excellent certification, in line with both companies’ commitment to sustainability.
Realis has been operating since last year. It is the third time the companies have formed a development JV.
Kier Property’s accounts showed revenue almost doubled in the year to 30 June 2024 , reaching £71m, up from £37.6m in its prior financial year.
The development business reported an operating profit of £4.3m and accounted for 2 per cent of overall turnover at tier one contractor Kier Group.
Kier Property’s return on capital employed was 3.9 per cent in the period, some way off its target of 15 per cent.
The accounts said it was well-placed to reach the target over time and would benefit from an increase in the value and consistency of capital the wider group invests in it.
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Ian Weinfass