Investec Real Estate has provided two 22-month senior development loans, totalling £28.7 million, to Chancerygate to support the construction of two industrial schemes totalling 288,000 sq ft.
In Peterborough, the UK’s fastest growing city, Chancerygate will deliver 123,000 sq ft of industrial, roadside and trade space, on an 8.63-acre site.
Developed in a joint venture with Bridges Fund Management, a specialist investor with a focus on property, sustainable growth, and social outcome, the scheme is targeting a BREEAM Very Good certification. It is 15% pre-let to established businesses including Costa and Wendys, who will benefit from its proximity to the city centre (two miles) and excellent connectivity via the nearby A15, A47 (Norwich to Leicester) and A1 (London to Edinburgh). The scheme is due to complete in Q1 2023.
The second scheme, in Aston Clinton, outside Aylesbury, will comprise 165,000 sq ft of industrial space across 16 units. Green initiatives include electric vehicle charging points, photovoltaic panels and a low air permeability design. It is situated directly off the A41 dual carriageway with excellent road connectivity to Junction 20 of the M25 and Aylesbury. The first units will be available in Q1 2023.
The UK’s industrial and logistics occupational market performed strongly in Q2, with limited new supply and more businesses seeking to future proof their operations in response to global supply chain issues. Take-up reached 16.2 million sq ft, the second strongest Q2 total on record, resulting in near record low vacancy of 3.4%. Occupiers continue to focus on high-quality space with Grade A accounting for 13.1 million sq ft (78%).
Jonathan Long, Head of Corporate Real Estate, Investec, commented: “The industrial sector remains a key conviction call, specifically sustainable, well-connected small and mid-box units, where there is a breadth of occupier demand underpinning an acute supply-demand imbalance. This transaction further strengthens our relationship with Chancerygate, for whom we have delivered on similar transactions with ease and efficiency in the past, while this is our first loan with Bridges, whom we hope to work with again.”
James Deane, Finance Director, Chancerygate, added: “It is very pleasing to have concluded two more development facilities with Investec. Their knowledge of our business and understanding of modern industrial and logistics development is especially important. It makes the funding process both quicker and more efficient, giving us greater confidence and certainty.”