Investor forward fund 1.1 million ft2 of warehouse space
Investor Ergo Real Estate, on behalf of Aver Property, its joint venture with NFU Mutual, is forward funding the development of 1.1 million ft2 of warehouse space across the UK.
It has agreed to fund two mid box schemes; one in Middlewhich where it will see the development of Units 1,2 and 3 totalling 222,743 ft2 at Ergo Park, which is being brought forward by Total Developments. Another four unit scheme will be brought forward at Ergo Park Sheffield.
Two further big box warehouses have been funded as part of this announcement. Aver will fund Prologis’ 352,812 ft2 DC2 Prologis Park in Fradley as well as a single 367,163 ft2 industrial unit at Broadway Green Business Park in Oldham, which will be developed by Rula Developments.
Fradley, Middlewich and Sheffield already on site and Oldham set to follow this summer. All schemes are targeted to be delivered between Q1/2 2022.
BentallGreenOak provided a c£60M programmatic facility package to facilitate the build out and delivery of the portfolio.
Martin Sheridan, Principal of UK Debt at BentallGreenOak (BGO), says:
“We are delighted to support the Ergo and NFU real estate platform on their recent large scale logistics transaction. BGO has been highly active debt investors in the UK and European logistics market over the last two years. The COVID pandemic has accelerated certain behaviour’s which mean these assets are now in greater demand than ever. Our principal lending focus is on brand new state-of-the-art buildings, in close proximity to large conurbations and arterial transport routes – facets underpinning the subject portfolio. This programmatic facility allows Aver to build out and lease up multiple properties over the next 3 years, with an ability to upsize and expand the facility as new opportunities become available”.
Burbage Realty acted for Aver on Oldham and Fradley, M1 Agency acted on the Sheffield and Middlewich transactions. Peritus Group acted on the debt facility agreement between Aver and BentallGreenOak.