Investec loans £11 million to fund development of nine industrial units in Cheshire
Investec Structured Property Finance (“Investec”) announces an £11.26 million 24 month loan to Chancerygate, the UK’s largest multi-unit industrial property developer and asset manager. The facility will fund the development of nine industrial units at the 252,000 sq ft Novus site in Knutsford, Cheshire.
Expected to complete in late 2020, Phase 1 of the site totals 130,000 sq ft of space, with the flexible units, suitable for a range of occupiers, ranging from 4,000 sq ft to 30,000 sq ft. Chancerygate has already disposed of more than half of the available units, having agreed the sale of four units totalling 23,383 sq ft and secured a pre-let with Sytner Group, the UK’s leading car dealer, for a 30,000 sq ft unit.
Novus is situated on the established Parkgate Industrial Estate in Knutsford, North Cheshire, and provides a mix of industrial warehousing and office accommodation. Spread over 16 acres, the site benefits from excellent transport links, with both junction 19 of the M6, the major arterial route connecting Birmingham and Manchester, and Manchester International Airport just a short drive away.
This latest transaction continues Investec’s strategy of supporting established developers in strongly performing markets: the North West UK industrial market is characterised by significant undersupply, with less than 1.5 years of Grade A space in the region.
Jonathan Long, at Investec Structured Property Finance, commented:
“The industrial sector continues to thrive thanks to strong demand from SMEs across various sectors including manufacturing, storage, retail, pharmaceuticals and of course logistics.
This was an appealing opportunity to work alongside Chancerygate, an established and highly reputable industrial specialist, for the first time, on a development project which benefits from an excellent location in the heart of the UK as well as impressive transport connectivity. Our experience in the industrial sector meant we were comfortable with the speculative element of this scheme at the point of funding, which enabled us to structure this transaction and kickstart construction.”
James Deane, finance director at Chancerygate, added:
“Novus is our flagship development in the North West and we are delighted to work with Investec to deliver this scheme. Investec’s strong track record for funding industrial development and its understanding of our business model, which enables us to offer units on both a freehold and leasehold basis, has allowed us to commence the construction of high-specification industrial and warehouse space suitable for a wide range of different occupier requirements.”