Investec completes £12m development loan to Kier Property
Investec Structured Property Finance (“Investec”) announces it has completed its latest loan to Kier Property, taking total loans provided to Kier Group’s specialist Trade City & Logistics City brands alone to over £50 million.
Investec has provided a further £12 million, 24-month facility to finance the development of over 100,000 sq ft of Grade-A industrial space near Basingstoke. This follows the success of several other similar light industrial developments by Kier Property, all funded by Investec, in the South East.
The scheme will be under Kier Property’s Logistics City brand and is located at Houndmills Industrial Estate, Basingstoke. The completed asset will comprise three distribution centres of 22,500 sq ft, 36,000 sq ft and 49,000 sq ft in size. The modern premises, adjacent to Junction 6 of the M3 highway, will help address Basingstoke’s lack of mid-box supply, being units above 20,000 sq ft. The land is fully consented and practical completion of the scheme is expected in autumn 2018.
This latest loan builds on Investec’s recent transactions with Kier Property which includes five light industrial trade counter sites, at Frimley, Sydenham, Oxford, Bracknell and Thurrock. Investec’s wider funding relationship with Kier Property includes an office building in London’s West End, three student accommodation sites, a speculative warehouse development and a large mixed-use scheme in Reading.
Hayley Scott, Investec Structured Property Finance, commented:
“Track record and relationships are a key feature of our lending decision-making and this latest transaction with Kier highlights both aspects in full. Industrial assets are a popular sector at the moment, but picking the right sites and backing the right developers is a crucial part of the equation. This is now our twelfth development with Kier and we are pleased to be continuing what is a strong and enduring relationship.”
Pip Prongué, Kier Property’s managing director for the South, added:
“This scheme is an excellent development opportunity for Kier Property. We’ve received great feedback on our product, and we continue to focus on providing the right product at the right price. It also demonstrates the continued strength of our relationship with Investec to find great development opportunities in great locations.”