Investec

Investec to lend £27m for south London logistics park development



Investec Structured Property Finance has agreed to provide Valor Real Estate Partners with a £27m senior loan for the development of a new logistics park.

It will provide a 48-month loan at 65% loan-to-cost and support Valor through the planning, development and stabilisation periods.

Valor acquired the existing site, which measures around 110,000 sq ft, in January and proposes to redevelop it into a 153,000 sq ft Grade-A urban logistics park with modern trade counter and mid box units ranging from 5,000–85,000 sq ft.

The site in Mitcham, south London, also has the potential to cater for single tenant build-to-suit requirements.

Investec has now committed over £160m across nearly 20 deals since the start of 2018.

Erin Clarke, relationship manager at Investec Structured Property Finance, said: “This is an exciting opportunity for us to partner with a highly experienced logistics investor and developer that has the skills and vision to deliver this project from planning consent through to completion, while simultaneously driving competition from a range of occupiers for rental demand.

“The growing appeal of urban logistics has been well-documented as consumer habits have evolved; the rise of e-commerce and increasing demand for same-day delivery make sites like this near large cities very attractive.”

Matthew Phillips, principal at Valor, added: “We are pleased to secure acquisition and development financing for this exciting new industrial development in Mitcham, south London.

“As London’s industrial supply and demand imbalance continues to grow, this site will provide [a] high-specification new product with prime access to the densely populated submarkets.

“Partnering with Investec — a new lender relationship for Valor — validates our strategy and we look forward to working with the team on this scheme.

“In addition, the financing proceeds provide additional capital for us to deploy into future industrial opportunities in London and other pan-European urban logistics assets.”


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