Investment firm Cain has renewed a £50 mln (€58 mln) revolving credit facility with Tungsten Properties to fund a pipeline of logistics opportunities in the UK.
The three-year renewal follows the successful deployment of the initial £36 mln (€42 mln) facility in 2020.
Cain’s partnership with the Leicester-based company began in 2019, initially financing four successful schemes at Witham, Witney, Oakham and Lutterworth with over 40,877 m2 of industrial and distribution space and a gross development value of £61 mln (€71 mln).
Cain’s strategy focuses on £10-50 mln development loans across residential, commercial, and alternative sectors in the UK.
Nikos Yerolemou-Ennsgraber, director – real estate debt at Cain International said: ‘This transaction presented an opportunity to expand our reach across a sector with fundamentals we believe in, while meeting the growing demand for high-quality logistics assets across the UK delivered by reputable developers. At its heart, Cain is a partnerships business, and we are delighted to strengthen our relationship with Tungsten through this facility.’
Jeff Penman, managing director, Tungsten Properties added: ‘In the last three years, there’s no doubt that our £50 mln revolving credit facility with Cain has enabled us to be more agile and secure great quality development opportunities. Also, it has allowed our equity to be spread across a greater number of projects. This RCF renewal for a further three years gives us greater fire power to respond to and consider opportunities as soon as they present themselves.’
Tungsten Properties has so far developed over 215 completed units across the UK, totalling around 288,000 m2, with a gross development value of £421 mln (€488 mln).
Projects under construction include Velocity Point, a 24,573 m2 multi-let industrial estate in Leeds and the 23,569 m2 Vaughan Park six-unit industrial scheme in Tipton.
