Block Industrial closes speculative development financing
28 November 2022
Block Industrial has secured speculative development financing for three distribution warehouse schemes located in Sunderland, Corby, and Evesham. The development portfolio is capitalized by Davidson Kempner European Partners and operated by Copley Point Capital.
BentallGreenOak (BGO) has provided funding to Block Industrial to speculatively build 778k sf across three prime regional UK locations. The portfolio comprises the development of 11 brand new units in total and is focused on chronically under-supplied sub-markets of the East Midlands, West Midlands, and the Northeast.
The largest development scheme is in Evesham which comprises six units totalling 450k sf and is located on the Vale Park Industrial Estate. Three of the six units in Evesham, totalling 168k sf are currently under construction with planned practical completion (PC) in August 2023. The Corby property is located on the former Weetabix factory site in Earlstrees Industrial Estate and the development will create a brand new single big box unit of 160k sf. The Sunderland property is located on the Turbine Business Park and comprises four units totalling 168k sf. The four units will reach PC in January 2023 with one of the units already pre-leased to Decor Cladding Direct.
Nimit Oberoi, Director, Copley Point Capital commented:
We are pleased to partner with BGO and address the demand supply gap for Grade A stock that we are currently seeing across the UK.
“We are delighted to see the strong level of occupier interest and have already achieved one pre-lease six months prior to PC.”
Martin Sheridan, Managing Director, BGO commented:
“We are delighted to be supporting our partners in delivering another high-quality UK industrial portfolio. There is a chronic-undersupply of new build ESG-centric industrial space in these three sub-markets and coupled with the short-term pause in speculative construction that is taking place, we believe the product and portfolio is being delivered at the right moment in the market. Including this investment BGO will have funded 3M sf of UK logistics assets in the last 12 months – a trend we see continuing entering into 2023”.
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