Canadian investor Ivanhoé Cambridge has bought into Peel’s Logistics £1B U.K. warehouse property business.

The deal means Montreal-based Ivanhoé Cambridge join Australian investors Macquarie Capital and the parent Peel Group as shareholders in the spin-out, formed in 2015.

The deal comes three months after Ivanhoé Cambridge teamed up with Peel to invest in a portfolio including the Port Salford scheme near Manchester, and plans to develop an 800K SF warehouse in Sheffield.

Investor interest in North West England industrials is undiminished despite the first small signs that the market may have plateaued: last week InfraRed Capital bought a £320M portfolio of M6 motorway warehousing.

"With the backing of Ivanhoé Cambridge alongside our existing shareholders, Peel Logistics Property is in a great position to deliver its business plan and continue to provide occupiers and capital partners with access to high quality U.K. logistics real estate,” Peel Logistics Property Chief Executive Jeremy Greenland said.

Peel Logistics Property was established in 2015 as a joint venture between Macquarie Capital and Peel Group. In 2016, the directors of Evander Properties, Jeremy Greenland and Neil Dickinson, became shareholders and assumed senior leadership positions within Peel Logistic Property. The group has recently closed its first investment venture and has a current pipeline of opportunities of more than £1B.

Macquarie Capital (Europe) Limited acted as exclusive financial advisor to Peel Logistics Property.

The tie-up with Canadian investors was announced the day Peel revealed that a speculative 225K SF Trafford Park warehouse to be funded by Legal & General has won planning permission.

Work on site will begin this spring for completion in spring 2019.

“With continued strong demand for larger distribution warehouses, this planning consent allows us immediate capacity to satisfy a scale of development not readily available elsewhere on Trafford Park,” Legal & General IPIF Assistant Fund Manager Tim Packer said.

GVA and Savills are the retained agents for the scheme.