The £11bn (€12.6bn) South Yorkshire Pension Fund has provided a £34m loan to Trammell Crow Company (TCC) to help develop a logistics facility in Sheffield, UK.
Commercial real estate investor TCC said the development loan, from the South Yorkshire Pensions Authority (SYPA), was secured against a 20-acre site on Shepcote Lane which will be used to deliver a 367,151sqft logistics facility. Construction is expected to start this month, with completion due in summer 2023.
Councillor John Mounsey, the chair of the South Yorkshire Pensions Authority, the public body responsible for the running of the South Yorkshire Pension Fund, said: “It’s a pleasure to have invested our members’ capital in a scheme like Trammell Crow Company’s Sheffield development, providing quality jobs for our community and being developed to high environmental standards.
”It is rewarding to see the Pensions Authority use its power as an investor to help with a number of developments across South Yorkshire while making the returns we need to pay our members pensions.”
Richard Fell, the head of European logistics capital markets at Trammell Crow Company, said: “Securing this loan against our Sheffield site is a strong reflection of the quality of the assets that we are developing, and our site-finding capabilities in supply-constrained markets.
”Benefitting from excellent locations in prime logistics markets, built to the highest quality and sustainability standards that ensure they are best equipped to tackle the challenges and potential regulations of the future, they are strong investment opportunities.
”We are continuing to see investment appetite from equity and debt investors across our European developments and look forward to continuing to engage with everyone from local investors such as SYPA as well as European and global institutions.”
US-based developer TCC, which launched in Europe last year, now has three sites in the UK (in Sheffield, Milton Keynes and most recently in Heywood near Manchester), as well as ones in Germany, Spain and the Czech Republic, the company said.
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