Investec Real Estate has provided an £80m (€92.4m) loan to Norton Group to help develop a 1.2m sqft distribution centre in the East of England.
Investec said the financing package would fund the development of the £200m distribution centre in Suffolk, pre-let to retailer The Range, a Norton Group subsidiary.
The development is located at Gateway 14, East Anglia’s newest and largest business, innovation and logistics park.
Norton Group is a long-standing client of Investec and this first real estate debt transaction broadens the relationship between the two parties, Investec said.
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, CEO at The Range, said: “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.”
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