Investec Structured Property Finance has provided a £20 million development loan to Trade City, its light industrial joint venture with Kier Property.
The loan will fund the JV’s acquisition and development of an 11.6-acre trade counter and logistics scheme in Thurrock, Essex. The development will comprise 12 trade counter units and four logistics warehouses, each of between 40,000 and 50,000 square feet.
The loan has been provided for a two and a half year term, to finance the development and to cover the JV as it leases the space. The facility is understood to reflect a loan-to-cost ratio in the region of 70 percent.
The Thurrock scheme is the fifth industrial development undertaken by Investec and Kier’s joint venture, which has a combined development value of more than £60 million. The first two schemes were completed last July and have been sold. Developments in Oxford and Bracknell are underway and due to complete in March and May respectively.
“There is robust demand for prime industrial and logistics space with excellent connectivity and proximity to major urban locations. The Trade City brand has established a strong track record of delivering this type of space to a range of occupiers and the development of this site in Thurrock is another example of the joint venture’s understanding of future market requirements,” said Mark Bladon, property lender at Investec Structured Property Finance.
“Thurrock is a great addition to our Trade City and Logistics City portfolio and continues to strengthen our relationship with Investec SPF. The two brands complement each other and we have aggressive expansion plans for 2016 in response to the growing demand in both sub-sectors,” added Phil Sutton, director of Kier Property.