Investec SPF grows urban logistics exposure with £6.25m acquisition and development loan

By Bridging Loan Directory 28th November 2018

Investec Structured Property Finance (“Investec”) announces that it has provided experienced real estate investment manager Vengrove with a £6.25 million senior facility to support the acquisition of a site comprising urban warehouses in Warrington, North West England.

Comprising three industrial units and a standalone office building, totalling 171,372 sq. ft., the portfolio is currently let on a short-term basis to global transportation and logistics service provider XPO Logistics.

The 5-year facility represents the first time that Investec has partnered with Vengrove, who intend to undertake some light asset management and reposition the warehouses in order to drive rental growth, benefitting from the portfolio’s strategic location serving the Warrington conurbation of over 200,000 people.

During 2018 Investec has significantly increased its loan book exposure to the industrial sector, committing over £53million across five deals alongside both new and existing clients, reflecting the growing demand from domestic and international investors and developers looking to access the favourable yields on offer.

Jonathan Long, Investec Structured Property Finance, commented:

“Our experience lending in the industrial space meant we were a natural partner for Vengrove, who required credible senior acquisition and development finance, in a short space of time.

“This deal grows our exposure, in partnership with a major real estate player, to the outperforming urban logistics/industrial sector, which continues to benefit from structural changes impacting on the way consumers shop. We look forward to this being the start of a long term relationship with the borrower as they look to grow their real estate portfolio in the UK.”