Investec inks €30m loan for South London shed scheme

Alternative lender Investec Structured Property Finance has provided a £27 mln loan to Valor Real Estate Partners for a 153,000 ft2 South London urban logistics development.

The speculative development in Mitcham, South London, will comprise a modern trade counter and mid box units ranging from 5,000 ft2 to 85,000 ft2, according to Valor. The existing estate comprises around 110,000 ft2 of space and was acquired in January.

Investec said that the 48-month loan, agreed at up to 65% loan to cost, will support Valor through the planning, development and stabilisation periods.

'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, whilst simultaneously driving competition from a range of occupiers for rental demand,' said Investec's Erin Clarke.

'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,' Clarke added.

Since the start of 2018, Investec has significantly increased its loan book exposure to the industrial sector, committing over £160 mln across nearly 20 deals, according to the firm.

Matthew Phillips, principal at Valor, said: '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 high specification new product with prime access to the densely populated submarkets.'


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