Tungsten secures £50m facility for industrial pipeline
Sheds developer Tungsten Properties has gained a £50m revolving credit facility from lender Fortwell Capital to finance its £180m logistics development pipeline.
The development pipeline covers 1.5m sq ft of industrial space across the UK over a period of 36 months.
The deal was seeded by a £4.4m tranche in September 2019, which enabled its Tungsten Park Witham development in Essex.
Sheds developer Tungsten Properties has gained a £50m revolving credit facility from lender Fortwell Capital to finance its £180m logistics development pipeline.
The development pipeline covers 1.5m sq ft of industrial space across the UK over a period of 36 months.
The deal was seeded by a £4.4m tranche in September 2019, which enabled its Tungsten Park Witham development in Essex.
The Essex site is a 40,000 sq ft, three-unit industrial and logistics scheme, expected to complete in September this year.
Other schemes to benefit from the capital will include Tungsten Park Witney, with funding for the first phase of its 490,000 sq ft development. The balance will be used for further land acquisitions.
Jeff Penman, managing director of Tungsten Properties, said: “With the certainty of funding provided by the new facility, we can now unlock the potential of our existing schemes with a greater controlling interest and grow our portfolio with new site acquisitions across the country.
“Our mission continues to be to provide exceptional industrial and warehouse workspace to occupiers so that they can thrive and create local jobs for their communities, while delivering investment return.”
The deal is Fortwell’s first major loan to a commercial developer since January last year, as it begins a push into the logistics sector.
In 2019, Fortwell lent £250m across 10 separate finance facilities to UK developers focusing on markets including private sale residential, care homes and commercial space.
The lender is looking to continue its strategy of diversifying into commercial property to build a balanced loan portfolio.
Nikos Yerolemou, associate director at Fortwell Capital, said: “Take-up in the logistics sector remains strong and vacancy rates are lower than they have been in decades.
“With the structural changes facing retail, the current demand is for grade A space from a number of high-profile businesses in the supply chain.”
Captima Capital acted on behalf of Tungsten Properties.
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