Investec agrees JV £18m loan for Croydon warehouse
Investec Bank has provided a joint venture between a logistics fund, sponsored by CBRE Investment Management and Chancerygate, with an £18m senior loan for the development of a 93,000 sq ft, Grade A industrial scheme in Croydon, South London.
Called The Works, construction started on the development in March and, once complete, it will comprise three buildings subdivided into 15 units.
These will range in size from 2,400 sq ft to 16,000 sq ft, with an option to combine units, ideally suited for third-party logistics and distribution occupiers.
Investec Bank has provided a joint venture between a logistics fund, sponsored by CBRE Investment Management and Chancerygate, with an £18m senior loan for the development of a 93,000 sq ft, Grade A industrial scheme in Croydon, South London.
Called The Works, construction started on the development in March and, once complete, it will comprise three buildings subdivided into 15 units.
These will range in size from 2,400 sq ft to 16,000 sq ft, with an option to combine units, ideally suited for third-party logistics and distribution occupiers.
Sustainable energy consumption is a key consideration for the project, which is targeting a BREEAM ‘Excellent’ certification and an EPC A+ rating as a minimum for all units. Features will include EV charging points, 76 secure cycle parking spaces and PV panels on all units, which are designed to utilise materials that maximise energy performance.
The Works is located in a predominantly industrial area to the north-west of central Croydon and ten miles south of central London. The site benefits excellent arterial connectivity via road and rail and is nine miles from Junction 7 of the M25 motorway.
Tom Griffiths, head of origination at Investec, said: “Take up for sustainable, well connected I&L space in London, where proximity to the capital’s nine million residents and one million businesses is crucial for occupiers, remains robust. With increasing competition from alternative land use, in particular new housing, squeezing new supply, the rental growth prospects for the sector remain very compelling.
“This latest facility kickstarts an exciting new relationship with a major institutional manager in CBRE IM and furthers our strong, longstanding relationship with Chancerygate, building on the Real Estate team’s considerable track record funding best-in-class, experienced counterparties operating in the small to mid-box industrial market.”
Tom Berens, senior director, team lead treasury and debt financing at CBRE IM, said: “Securing this loan marks a significant milestone for our fund’s growth ambitions. We are delighted to team up with Investec, further strengthening their long-term relationship with our JV partner Chancerygate. We continue to see attractive returns in the logistics sector when delivering sustainable, high quality assets in areas with constrained supply.”
Michael Treliving, chief financial officer at Chancerygate, added: “The Works is the first multi-unit urban logistics scheme to be developed in Croydon for 10 years and will help meet the region’s demand for high-quality, sustainable accommodation.
“We’re very pleased to once again have Investec’s trusted support for one of our developments. Most importantly, it further enables the ability of our partnership with CBRE IM to deliver a nationwide portfolio of much-needed urban logistics assets.”
