NFU Mutual has agreed a circa £100m forward funding deal with Clowes Developments for six logistics developments across the UK.
The deal is the largest to date that Derbyshire-based Clowes has secured and will see the developer deliver six new grade-A logistics facilities, five of which will be built speculatively. The sixth is a 162,500 sq ft unit prelet to Deichmann-Shoes UK. Deichmann will move into the purpose-built facility in January 2022.
Totalling in excess of 1m sq ft, the six new facilities will be built across three Clowes Developments sites, including EMDC, Castlewood Business Park and Centrix Park. The size of the units will range from 58,586 sq ft at Centrix Park to a unit of close to 250,000 sq ft at EMDC.
The remaining five speculative units include a 58,586 sq ft industrial/warehouse/distribution building opposite to the proposed Deichmann building at Centrix Park near Corby, two buildings of 176,817 sq ft and 134,192 sq ft at Castlewood Business Park in Nottinghamshire, and a 189,573 sq ft and 249,418 sq ft unit at EMDC in Derbyshire.
Clowes director Paul Shanley said: “The deal with the NFU Mutual is a departure from our groups normal internal funding arrangements, primarily due to the size of the proposal. Planning applications, where applicable, are ready to go and we expect to see site activity from late summer onwards. With the current shortage of good quality ‘big shed’ stock, the timing would appear just right to take advantage of market conditions.”
Jon Brice, property fund manager at NFU Mutual, said the funding formed a key part of its strategy.
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
