Gazeley - Industrial Development - Hemel Hempstead, Maylands Avenue

Date: 13 Jul 2004

Expanding its UK investment programme MetLife, one of the largest US financial institutions, has teamed up with leading European logistics property developer Gazeley, to commence a warehouse development joint venture in Hemel Hempstead.

The Gazeley / MetLife JV has acquired the 20 acre (8.1 hectare) Maylands Avenue site, which Gazeley originally purchased in late 2003. The site is strategically located close to Junction 8 of the M1 and was previously occupied by Dexion International.

Gazeley will act as development manager for the £50 million venture. The developer has commenced construction of two distribution units of 254,000 sq ft and 165,000 sq ft respectively (23,597 sq m and 15,329 sq m). GSE (UK) Ltd has been appointed as main contractor overseeing construction of the new scheme. Completion of the first unit is scheduled for December this year.

Already active in the UK as a lender, MetLife views the tie-up as a strategic arrangement enabling the company to expand its equity investment portfolio with one of the pre-eminent developers in the distribution sector. The recent appointment of Stephen Mundy to head up its London real estate team underlines MetLife's commitment to growing its presence in the UK and Europe.

Nick Redwood development director for Gazeley comments:
"This project represents a rare opportunity to develop speculatively large footprint buildings in a prime location at the intersection of the M1/M25 and M10. The project follows on from Gazeley's success in developing and letting 600,000 sq ft at Hemel Distribution Centre and Punchbowl Park, Hemel Hempstead and will meet the growing demand for high quality, strategically located buildings."

FPD Savills represented MetLife and Holley Blake represented Gazeley in the site purchase. Both firms will be retained as joint letting agents.

Where do I go now?: » View the latest news items » View the news archive » Subscribe to Weekly Construction Newsletter » Submit news