Joint venture partners CBRE Investment Management and Chancerygate have secured a £18m senior loan from Investec Bank to fund the development of a 93,000 sq ft Grade A industrial scheme in Croydon, South London.
Construction of The Works scheme commenced last month and when fully built out the development will comprise three buildings offering 15 units ranging in size from circa 2,400 sq ft to 16,000 sq ft.
Tom Griffiths, from Investec, said: “Take-up for sustainable, well connected I&L space in London, where proximity to the capital’s nine million residents and one million businesses is crucial for occupiers, remains robust. With increasing competition from alternative land use, in particular new housing, squeezing new supply, the rental growth prospects for the sector remain very compelling.
“This latest facility kickstarts an exciting new relationship with a major institutional manager in CBRE IM and furthers our strong, longstanding relationship with Chancerygate, building on the real estate team’s considerable track record funding best-in-class, experienced counterparties operating in the small- to mid-box industrial market.”
Tom Berens, senior director, team lead treasury and debt financing at CBRE IM, added: “Securing this loan marks a significant milestone for our fund’s growth ambitions. We are delighted to team up with Investec, further strengthening their long-term relationship with our JV partner Chancerygate. We continue to see attractive returns in the logistics sector when delivering sustainable, high quality assets in areas with constrained supply.”
Michael Treliving, chief financial officer at Chancerygate, said: “The Works is the first multi-unit urban logistics scheme to be developed in Croydon for 10 years and will help meet the region’s demand for high-quality, sustainable accommodation. We’re very pleased to once again have Investec’s trusted support for one of our developments. Most importantly, it further enables the ability of our partnership with CBRE IM to deliver a nationwide portfolio of much-needed urban logistics assets.”
