The funding includes a £5.7m facility from a private client investment manager and a £13.1m development finance loan from a specialist lender, agreed on a 36-month term.
The money assisted with Tavis House’s recent acquisition of a four-acre site in Hoddesdon Business Park, which will see the existing building demolished and redeveloped into a new 80,000 sq ft logistics and industrial warehouse.
Tavis House originated the £25m-plus GDV project and will act as development manager until its expected completion in March 2023.
The development is expected to attract significant demand from existing and new tenants, as it will offer good transport links to London and the wider South East.
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The transaction forms part of a larger programme of acquisitions and development projects Tavis House and Charles Irvine intend to undertake to establish a portfolio with an end value of approximately £200m-250m over the next three years.
Martin Smith, founder and managing director of Tavis House, said: “We have been working with Charles Irvine for several years, and this is the third project we have funded together.
“This transaction has taken over nine months to negotiate and has benefited greatly from Charles Irvine’s understanding of both the real estate capital markets and the acquisition and development processes required to analyse and manage projects of this type.
“We look forward to undertaking further acquisitions over the coming months and years in partnership with Charles Irvine and with the same capital partners and new ones.”
David Cunnington, managing director at Charles Irvine, commented: “This was a complex process involving two funding partners that had their own specific financing requirements.
“It was a pleasure working with both parties to secure what is a strategic site in a prominent location.
“Tavis House has a proven track record for creating significant value out of its acquisitions and we look forward to working in partnership with them to develop a large-scale portfolio of logistics and industrial real estate assets.”