The developer is promising a new logistics hub in Birmingham after the deal

Developers have unveiled plans to create a new 500,000 sq ft logistics center in Birmingham following a buyout deal.

US company Invesco Real Estate has acquired two existing industrial buildings in Vantage Way, opposite the Fort Dunlop hotel and office complex in Castle Bromwich.

It will now work with investor and developer Barwood Capital to refurbish and extend them to meet Grade A standards.

Atlanta-based Invesco Real Estate has also acquired 6.4 acres of vacant land on the same site where it plans to build two additional units ranging from 60,000 sq ft to 90,000 sq ft. Barwood Capital will act as development manager for the combined scheme.

It is the latest move by Invesco Real Estate into the Castle Bromwich district, having acquired The Fort retail park in 2021, promising to change the mix of uses there to reflect the changing retail landscape.

Rob Johnston, UK investment managing director at Invesco Real Estate, said: “Despite the occupational uncertainty of the past two years, the UK remains relatively undersupplied in terms of modern, institutional-grade accommodation.

“The acquisition of permanent units provides the opportunity to provide an attractive return on cost differential compared to prime Midlands logistics yields with reduced development exposure.

“Furthermore, the marriage value from the adjacent vacancy combination will further solidify this as a premier scheme.

“Birmingham is at the heart of the highly attractive Midlands economic region and we are delighted to be working with Barwood Capital on this initiative.”

Jonathon Ellerington, senior investment manager at Barwood Capital, added: “Given the quality of the existing units, together with the excellent opportunity to further develop speculatively in this prime logistics location, we are delighted to complete these acquisitions and develop this scheme with Invesco Real. Real estate.

“This is a location with proven professional demand for sustainable and well-located logistics units, and the refurbishment and redevelopment of these sites will serve to enhance the area while providing exceptional industrial space at a time when the market is undersupplied.”