The funding will support the development of a 93,000 sq ft, Grade A industrial scheme in Croydon, South London.

Called The Works, construction started on the development in March and, once complete, it will comprise three buildings subdivided into 15 units.

These will range in size from c. 2,400 sq ft to c. 16,000 sq ft, with an option to combine units.

The project, which is targeting a BREEAM ‘Excellent’ certification and an EPC A+ rating as a minimum for all units, will feature EV charging points, 76 secure cycle parking spaces and PV panels.

This facility is Investec’s first transaction with CBRE IM while Chancerygate is a longstanding client.

Tom Griffiths, originator of corporate real estate finance at Investec, commented: “Take up for sustainable, well connected I&L space in London, where proximity to the capital’s nine million residents and one million businesses is crucial for occupiers, remains robust.

“With increasing competition from alternative land use, in particular new housing, squeezing new supply, the rental growth prospects for the sector remain very compelling.

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“This latest facility kickstarts an exciting new relationship with a major institutional manager in CBRE IM and furthers our strong, longstanding relationship with Chancerygate, building on the real estate team’s considerable track record funding best-in-class, experienced counterparties operating in the small to mid-box industrial market.”

Tom Berens, senior director, team lead treasury and debt financing at CBRE IM said: "Securing this loan marks a significant milestone for our fund's growth ambitions.

“We are delighted to team up with Investec, further strengthening their long-term relationship with our JV partner Chancerygate.

“We continue to see attractive returns in the logistics sector when delivering sustainable, high-quality assets in areas with constrained supply.”

Michael Treliving, CFO at Chancerygate, added: “The Works is the first multi-unit urban logistics scheme to be developed in Croydon for 10 years and will help meet the region’s demand for high-quality, sustainable accommodation.

“We’re very pleased to once again have Investec’s trusted support for one of our developments.

“Most importantly, it further enables the ability of our partnership with CBRE IM to deliver a nationwide portfolio of much-needed urban logistics assets.”