PLP announces formation of its second UK Develop-to-Core logistics venture (UKLV2)

PLP is pleased to announce the successful close of its second UK develop-to-core logistics venture (UKLV2). The new venture, which has over £750 million of investment capacity, will focus on developing PLP’s deep pipeline of logistics real estate opportunities. Once capital is deployed, PLP’s assets under management are expected to be over £2.5 billion.

The UKLV2 investment vehicle has been capitalised by majority investor Ivanhoé Cambridge, Peel L&P and Greater Manchester Pension Fund, alongside an investment from PLP for enhanced alignment.

UKLV2 follows the success of PLP’s first investment vehicle, UKLV1, to which Ivanhoe Cambridge, Peel L&P, Macquarie Asset Management and senior management committed £500m of equity to develop over 10m sq ft of prime logistics space.

The venture’s develop-to-hold strategy will deliver high-quality large scale logistics facilities, located close to major urban conurbations across the UK. All projects will be sourced, developed, and managed by PLP’s experienced sector-specialist team.

The new venture has been seeded with a recently acquired, 18-acre prime logistics development opportunity (“PLP Stafford”) at Stone Business Park in the West Midlands. This speculative development of a 340,000 sq ft logistics unit will commence in September 2022, with practical completion scheduled for April 2023.

As a specialist developer and investment manager, PLP’s philosophy is focused on generating long term value and performance for its investment partners and tenants. This strategy combines market leading ESG credentials with investment in design initiatives to future proof assets, enabling occupiers to increase renewable energy adoption incrementally and cost effectively.

Jeremy Greenland, CEO of PLP, said: “Having fully allocated £500 million of equity commitments in UKLV1, we’re delighted to have received so much support from our capital partners on UKLV2. We have a great pipeline in store for this venture.”

Stanislas Henry, Senior Vice President, Operations and Strategic Partnerships, Europe at Ivanhoé Cambridge, said: “We are excited to start this new chapter in the development of PLP, following the very successful initial venture developed between 2017 and 2022. As a historical and strategic partner, Ivanhoé Cambridge is very happy to renew its trust in PLP’s management and team, who are very much aligned with our key financial performance objectives and with our ESG values. This investment also confirms our commitment to European logistics, a major focus of our strategic plan.”

Kevin Etchells, Senior Investment Manager at Greater Manchester Pension Fund said: “GMPF is delighted to be part of this new venture. The fund considers the UK logistics market to offer attractive risk adjusted returns. However, there is a clear shift of occupiers seeking out best in class assets, in particular with high ESG specifications. PLP has a strong team with an excellent track record in developing prime assets and are fully aligned with GMPF’s long-term investment objectives. We look forward to working with them further in developing and managing the portfolio”.

Steven Underwood, Chief Executive Officer of The Peel Group and Peel L&P said: “It’s fantastic to see the growth story of PLP continue with the successful close of UKLV2.  We are delighted to confirm our support for PLP’s management and team as they continue to carve a leading position in the UK logistics market.”