The Universities Superannuation Scheme (USS) and Fiera Real Estate have invested in a joint venture to develop industrial properties in urban locations across the UK.

The investment vehicle, which is managed by Fiera Real Estate head of investment management, Europe, Chris Button, will target brownfield and established employment sites to develop multi-let urban industrial schemes.

It will look to invest in core urban sites with strong sustainability credentials as the joint venture aims to capitalise on the ‘flight to quality’ in UK industrial assets.

With an initial term of five years, the joint venture is targeting individual acquisitions of up to £50m.

The joint venture is already under offer on two sites with a gross development value of more than £100m in the south east of England.

Fiera Real Estate was advised on the joint venture investment by Newmark.

“The joint venture will leverage our unique operating partner model and our strong track record in the delivery of ground-up development projects to assemble a market-leading logistics portfolio that is exemplary from an ESG perspective, and in terms of what today’s occupier prioritise,” said Fiera Real Estate head of European real estate, Charlie Allen.

“We are responding to occupier and investor demand for contemporary assets which further sustainability objectives, adding supply chain resilience, enhanced carbon emission profiles and future-proofing benefits to portfolios.

“Supply-demand imbalances, favourable pricing conditions and the digitalisation of the economy are some of the beta tailwinds driving the investment case in UK logistics, and we will be combining these with our proven ability in origination and delivery to create alpha for our investors.”

USS head of property, Alex Turner, added: “We are looking forward to working with Fiera on this exciting joint venture. USS has a strong track record in the industrial sector, with deep sector knowledge and a £1.5bn industrial portfolio.

“The joint venture provides USS the opportunity to continue to invest into the sector, which is supported by strong tailwinds, with a partner that provides a unique platform whilst increasing our development activity in the property mandate.”

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