Kier Property has secured a £21m loan from Puma Property Finance to fund the development of a new industrial and logistics unit in Milton Keynes.
The facility will be used to develop a state-of-the-art 125,647 sq ft Grade A industrial facility known as ‘Logistics City MK’.
The scheme will provide 112,860 sq ft of warehouse space and 12,787 sq ft of office space and will include a green roof and landscaped outdoor amenity spaces. The six-acre site previously housed a 66,493 sq ft warehouse and adjacent office block with car park.
Subject to final completion and the sustainability criteria being achieved, Kier will be entitled to a fee reduction on the loan amount under the terms of the ILF.
Leigh Thomas, group managing director at Kier Property, said: “We are very pleased to be partnering with Puma Property Finance on this exciting logistics development in Milton Keynes. Logistics City MK represents the next generation of sustainable industrial space, and this partnership demonstrates our shared commitment to delivering high-quality, environmentally responsible developments. We look forward to seeing the scheme come to life and building a strong relationship with Puma as we continue to expand our Logistics City portfolio.”
Kent Lawrence, senior manager at Puma Property Finance, added: “We are delighted to be partnering with Kier Property, an institutional client with a strong track record having successfully delivered over 50 industrial and logistics developments totalling more than 6.7m sq ft across their Trade City and Logistics City brands. Logistics City MK is a strong asset located in a prime distribution area and will feature top-tier specifications and the highest sustainability criteria. We continue to target likeminded stakeholders and provide a sustainability linked facility that rewards ambitious developers.
“More broadly, the industrial sector remains attractive to us as a funder due to the rebasing of values in recent years and provides an opportunity for us to continue diversifying our sector exposure. We look forward to seeing the scheme develop and growing our relationship with Kier.”
