Investec loans £80m to 1.2m sq ft Suffolk distribution centre

Investec Real Estate has provided Norton Group with an £80m financing package to fund the development of its £200m distribution centre in Suffolk, which is 100% prelet to the Range, a Norton Group subsidiary. On completion, the 1.2m sq ft scheme will serve as the Range’s main South East distribution hub and create around 1,650 jobs. The scheme will include solar PV panels, air source heat pumps, smart energy systems and 160 EV charging spaces. The distribution centre is part of the Range’s aggressive growth strategy that will see it significantly increase its existing store portfolio, in addition to its growing online presence. The development is located at Gateway 14, East Anglia’s newest and largest business, innovation and logistics park, 26 miles from Felixstowe Port. Ed Boughton at Investec Real Estate said: “Demand for tenant-critical, high-quality logistics space has remained strong throughout the current period of macroeconomic volatility, with occupiers seeking highly sustainable, best-in-class buildings with excellent transport links. “This financing is a fantastic opportunity to assist the Range, a significant Investec client, with its growth ambitions. Being able to support it through multiple offerings across the bank is a great demonstration of our relationship banking ethos.” Alex Simpkin, chief executive at the Range, added: “This is not only a major landmark in the expansion of the Range’s estate, it is positive news for the UK retail sector. Together with Investec’s expertise and understanding of real estate financing, we are effectively injecting millions of pounds into the economy at a time when it is much needed. “This vast distribution centre is one of the biggest warehouse developments in the UK in the past five years and will allow us to expand to further locations around the UK, delivering new jobs and store openings, as well as providing an even better service in-store and online for customers by allowing us to expand our product offering and that of the newly acquired Wilko brand.” To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews Image: Norton Group See which agents are doing the most industrial deals in the East of England >>