Investec funds Kier Property for developing industrial space
Investec Structured Property Finance has provided £12m to Kier Property for developing Grade-A industrial space
Investec Structured Property Finance has completed a £12m, 24-month facility to Kier Property, which adds to the Investec’s continued funding to Kier group. This investment adds to Investec’s recent deals with Kier Property which includes five light industrial trade counter sites located at Frimley, Sydenham, Oxford, Bracknell and Thurrock. Apart from this, other deals between the two include an office building in London’s West End, three student accommodation sites, a speculative warehouse development and a large, mixed-use scheme in Reading.
The latest investment round by Investec has been made to Kier Property’s Logistics City brand. This takes Investec’s total funding to Kier Group’s Trade City and Logistics City brands to over £50m.
The current loan to Kier Property will be utilised to develop more than 100,000 sq. ft. of Grade-A industrial space. This development is located at Houndmills industrial estate in Basingstoke. The scheme by Kier Group has full planning consent and it will include three distribution centres spanning 22,500 sq. ft., 36,000 sq. ft. and 49,000 sq. ft., which is expected to be completed by autumn 2018. Once complete, it will help address Basingstoke’s lack of mid-box supply.
Hayley Scott at Investec Structured Property Finance said that track record and relationships are a key feature of Investec’s lending decision making and this latest transaction with Kier highlights both aspects in full. Scott said that industrial assets are a popular sector at the moment, but picking the right sites and backing the right developers is a crucial part of the equation. This is now Investec’s 12th development with Kier and the firm is pleased to be continuing what is a strong and enduring relationship.
The managing director for the South at Kier Property, Pip Prongué added that this scheme is an excellent development opportunity for Kier Property. She said that Kier Property has received great feedback on its product and it continues to focus on providing the right product at the right price and added that it also demonstrates the continued strength of Kier Property’s relationship with Investec to find great development opportunities in great locations.