Chancerygate, a developer specialised in the UK’s logistics sector, has sourced a funding package with Lloyds Bank Commercial Real Estate totalling more than £61 million (€68.5 million).
The deal comprises a three-year £26.4 million term loan and £30 million revolving credit facility, providing the company with a “war chest” for new acquisitions and to help refinance parts of its existing portfolio, Lloyds said.
The financing includes a £5 million revolving development line, which will allow the firm to build and immediately refinance up to two new schemes at any one time. Chancerygate is set to deliver a new industrial park in Harlow, near London, that will benefit from the development line. It has pre-let over 50 percent of the scheme to builders’ merchant Travis Perkins, paint brand Dulux and kitchen supplier Howdens Joinery.
The funding platform will allow the developer to “quickly take advantage of new opportunities” in the UK industrial and logistics market, as it gives the firm the “the firepower and flexibility” it needs, said James Deane, finance director at Chancerygate.
The firm has “well located” developments demanded by a broad spectrum of occupiers, David O’Sullivan, director in the London Private Groups team at Lloyds added.
The first quarter of 2018 was the strongest on record in terms of demand for UK logistics since Q1 2015, despite uncertainty over Brexit. Total take-up during the quarter climbed to 10.2 million square feet, outpacing the same period last year by 60 percent, according to Cushman & Wakefield.