Feldberg Capital and HBD have secured a £54m development loan from BGO for their new UK-focused industrial & logistics platform Origin.
The loan will fund the acquisition and development of the JV’s initial portfolio of seed assets, comprising three sites from HBD’s pipeline with a combined GDV of circa £100m.
The three sites, which have the potential to deliver circa 450,000 sq ft of prime industrial & logistics space, are: the 270,000 sq ft, £53m GDV SPARK scheme in Walsall (pictured); the 71,000 sq ft, £27m GDV INTER in Welwyn Garden City; and the 107,000 sq ft ARK in Markham Vale, which has a GDV of £19m. Construction on each is due to commence in H1 2025 for delivery from H2 2025.
The Origin partnership will draw on HBD’s development pipeline and acquire sites from third parties to deliver circa £1bn of high quality industrial & logistics schemes across the UK over the next seven years.
Feldberg holds a 75% stake in the JV and HBD has a 25% share. Feldberg acts as the investment manager and HBD as the development manager.
James Lister, director at Feldberg Capital, said: “BGO’s financing of Origin’s three seed assets is a testament to the quality of the strategy, assets and sponsor. With a short timeframe to arrange financing for an intricate structure, it was a strong team effort to get this over the line. This facility will allow us to implement our business plan, whilst we look to grow the Origin portfolio and fulfil our aim of Origin becoming a market leader in the industrial and logistics mid-box space.”
Jim Blakemore, managing partner and global head of debt at BGO, added: “BGO are delighted to have the opportunity to support Feldberg and HBD in bringing forward the first developments in their new I&L platform. This deal represents a continuation of our strategy of lending on high-quality assets in strong locations across the UK and Europe with best-in-class sponsors. We hope to build on this new relationship with Feldberg and HBD and work together on further projects in the future.”
Hamer Boot, executive director at HBD, said: “The financing from BGO frees up equity to invest in future projects, supercharging the ambitious strategy for Origin as we target circa £1bn high quality I&L schemes within the next seven years. We have confidence in the occupational story and rental growth in these locations and expect to see improving supply and demand dynamics.”
