Strategic View:
Fiera Real Estate and the Universities Superannuation Scheme (USS) have launched a targeted joint venture to develop UK “mid-box” logistics. The deal pairs Fiera’s agility with USS’s £500m+ long-term capital base.
Full Story:
In a vote of confidence for the UK industrial sector, global asset manager Fiera Real Estate and the UK’s largest private pension scheme, USS, have forged a strategic joint venture. The partnership specifically targets the “Mid-Box” logistics market—industrial units between 50,000 and 200,000 sq ft—which has seen chronic undersupply due to planning constraints.
The “Club” dynamic here is classic “Manager-Allocator” alignment. USS, managing over £75 billion, provides the bulk of the equity, effectively acting as the anchor LP. Fiera, leveraging its network of regional development partners (like Wrenbridge and Opus North), acts as the operating partner. This structure allows USS to deploy capital into granular, high-yielding development projects without building a massive in-house development team.
The JV has already identified its first tranche of brownfield sites. Crucially, the partnership has a heavy ESG focus, targeting BREEAM ‘Outstanding’ certifications. This “Brown-to-Green” strategy is essential for attracting blue-chip tenants who are themselves under pressure to decarbonize their supply chains.
Why It Matters:
Logistics is fragmenting. The “Big Box” trade is crowded, so smart capital is moving downstream to “Mid-Box” and “Urban Last Mile.” This deal shows that major institutional investors are willing to pay for specialized access to these niche, operationally intensive sub-sectors.
Source(s):
Logistics Manager – IPE Real Assets
