The facility will be used to purchase the 19-acre site — which is part of Battlefield Enterprise Park, Shrewsbury’s premier logistics quarter — from Stadco.
The funding will also go towards the refurbishment and repurposing programme to create new space that matches the regional demand for ecommerce distribution centres.
The development, which will be known as Nine Bridges Industrial Park, plans to sub-divide the main 300,000 sq ft industrial complex and adjacent administrative office building into smaller units, ranging from 10,000 to 45,000 sq ft, to accommodate multiple occupiers seeking modern warehouse space.
The site is currently being used as a tier 1 supplier to the automotive industry, with notable operators at the wider Battlefield Enterprise Park including Volkswagen, Mercedes Benz, Veoila, Ford and Screwfix.
The site being repurposed will be acquired with vacant possession.
The £6.65m facility was arranged at 61% LTC on a 24-month term.
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Nikos Yerolemou-Ennsgraber, director at Fortwell Capital, said: “Despite being incredibly well located, Shrewsbury has seen very limited modern industrial development in recent years.
“Demand has outstripped supply for commercial properties in the area, and we anticipate that the growth of ecommerce will continue to accelerate this trend as more and more businesses look to strengthen their distribution capabilities on the outskirts of key urban centres.
“A major strength of Mm Capital’s proposition at Battlefield Enterprise Park is that the buildings are already in existence, offering an ideal break up opportunity to maximise value across multiple occupiers.”
Peter Leonard, managing director at Mm Capital, commented: “With the funding secured from Fortwell, we are able to create a series of new, modern units in a commercial gateway location that has access to a significant regional market, where such assets have traditionally been in short supply.
“The Fortwell team have been an excellent financial partner on this transaction, and it’s a credit to their expertise and experience that we were able to complete this deal during the extraordinary events of the last year.”