Walker Morris / Case Studies / ARGO Real Estate & Blue Coast Capital

Giving logistics sites a greener future with ARGO Real Estate

ARGO Real Estate has a sustainable vision for the UK’s dated logistics infrastructure – one that’s transforming draughty warehouses into models of energy efficiency. Together with investor Blue Coast Capital, ARGO has been pioneering a brown-to-green strategy and has, to date, completed six acquisitions with a combined value of over £250m. Fusing commercial focus with a keen eye for sustainability, we’re a core part of their team.

Background

For many years, property developers have seen the opportunity in sustainability – acquiring tired, under-performing sites and investing in transformation. From residential to commercial property, it’s a proven way to generate value while meeting regulatory demands and reducing environmental impact.

While others have focused primarily on cities, ARGO and Blue Coast Capital have applied this approach to a different sector. They identify strategically located but dated logistics sites – where demand is high but supply is low – and reposition them as sustainable, future-proofed logistics accommodation. Backed by a £500m investment fund, it is a long-term vision that’s already having a positive impact.

Challenge

With large-scale ambitions, and a marketplace that was quickly waking up to the same opportunity, speed was critical – without compromising on detail. Each new site required a rapid assessment of its potential, requirements and associated costs, distilling down the key metrics that would inform decision making.

At the same time, every asset presented its own individual challenges – from tenant leases to energy infrastructure – all of which would test our firm-wide expertise.

Adding value

From the outset, our team became ingrained in the wider strategy. This was not a typical conveyancing exercise: every site needed to be assessed through an ESG lens. So we developed a focused way of analysing and summarising the leases and reports for ARGO, consolidating many pages of information into easy-to-understand overviews.

By providing concise decision-ready metrics, the client could easily identify the key risks and opportunities across large volumes of complex legal content.

Mitigating risk

While many of these sites looks similar, each one brings its own challenges. We’ve addressed issues around power supply, leases structures, maintenance obligations, asset ratings and local authority consent. Responding to each one has called on expertise from across the firm, with our core team expanding from 4-5 specialists to 30+ professionals when needed.

Working as one

Completing a new acquisition every 10-14 weeks has developed a very close client-firm relationship. We’ve become their go-to partners, with a clear methodology for reporting at pace. Crucially, we’ve forged a strong personal partnership – on call (or text message) whenever our client needs us.

Outcome

This has been a transformative project for both our client and the urban logistics sector. To date, we’ve supported ARGO with the acquisition of six sites, each of which is has been repositioned as a beacon for sustainability. With many more sites on their radar, this is a journey that is still just beginning.

Acquisitions to date:

Beckton Trade Park, London
Tuscam Trading Estate, Camberley
Harp Trading Estate, Manchester

Northumberland Court, Chelmsford
Cowley Business Centre, Oxford
Merlin Estate, High Wycombe

“

Since working with Walker Morris on our Brown to Green platform, it was clear from the outset that they understood what we were trying to do. There’s a lot of complexity in turning ageing industrial sites into something sustainable.

They’ve always had an approachable, practical way of helping us. The advice is clear and straightforward; it tells us what we need to know so we can keep moving. They’ve played a big part in helping us build momentum, and we see them as a key partner in where the programme is heading.

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