Investec Real Estate has provided Chancerygate, the UK’s largest multi-unit industrial property developer and asset manager, with two, 22-month senior development loans totalling £28.7 mln (€32 mln).
The funds will to support the construction of two industrial schemes in Peterborough and Aylesbury totalling 288,000 ft2 (26,750 m2).
Jonathan Long, head of corporate real estate, Investec, commented: 'The industrial sector remains a key conviction call, specifically sustainable, well-connected small and mid-box units, where there is a breadth of occupier demand underpinning an acute supply-demand imbalance.
'This transaction further strengthens our relationship with Chancerygate, for whom we have delivered on similar transactions with ease and efficiency in the past, while this is our first loan with Bridges, whom we hope to work with again.'
In Peterborough, the UK’s fastest growing city, Chancerygate will deliver 123,000 ft2 of industrial, roadside and trade space, on an 8.63 acre (3.5 ha) site.
Developed in a joint venture with Bridges Fund Management, the scheme is targeting a BREEAM Very Good certification. It is 15% pre-let to established businesses including Costa and Wendys. The scheme is due to complete in Q1 2023.
The second scheme, in Aston Clinton, outside Aylesbury, will comprise 165,000 ft2 of industrial space across 16 units. Green initiatives include electric vehicle charging points, photovoltaic panels and a low air permeability design. The first units will be available in Q1 2023.
The UK's industrial and logistics occupational market performed strongly in Q2, with limited new supply and more businesses seeking to future proof their operations in response to global supply chain issues.
Take-up reached 16.2 million ft2, the second strongest Q2 total on record, resulting in near record low vacancy of 3.4%.
James Deane, finance director, Chancerygate, added: 'It is very pleasing to have concluded two more development facilities with Investec.
'Their knowledge of our business and understanding of modern industrial and logistics development is especially important. It makes the funding process both quicker and more efficient, giving us greater confidence and certainty.'
