Equation Properties in a joint venture with La Salle Investment Management has acquired a 25-acre site in Waterlooville, Hampshire, where it will develop a £60m distribution facility.

Equation and La Salle, acting on behalf of its client the British Coal Pension Fund, bought the site from Grainger in a deal for around £9m.

Grainger, the UK’s largest listed landlord, is the master planner and lead developer of Berewood, which is delivering 2,550 new homes.

Equation, on behalf of LaSalle, will develop out 450,000 sq ft of B1, B2 and B8 commercial uses in phases over the next three years.

The first phase is likely to be in the region of 150,000 sq ft of units in the 5,000-20,000 sq ft size range, which will be developed speculatively.

Steve Spray, fund manager at LaSalle, said “Our client’s investment in this development reflects our belief in the strength of the south coast industrial and distribution markets.”

Simon Holley from Equation Properties said: “We are delighted to be working with LaSalle on this exciting project and we are particularly encouraged by the level of demand in the local market.”

Equation were advised by Kimmre on the transaction; the fund by LaSalle, and GVA and Grainger PLC, were advised by CBRE.