Investec Structured Property Finance has agreed to provide £25m of stretched senior debt to a new joint venture with Kier Property.
The lender has teamed up with the development arm of the construction group to bring forward five properties under Kier’s Trade City brand with a value of around £50m.
Investec and Kier Property are also jointly putting up £11m of equity to fund the joint venture alongside the four-year facility.
The partners will speculatively build five Trade City units of up to 20,000 sq ft in London and the Home Counties.
This will add to Kier’s 2m sq ft portfolio of light industrial, warehousing and trade counter properties, which it either sells or leases to tenants including Travis Perkins, Screw Fix Direct, Magnet, Spaceslide and Tool Station.
It also has schemes in various stages of planning in Frimley, Surrey, valued at £11m; Sydenham, SE26, valued at £5.9m; and Bracknell, Berkshire, valued at £3.2m.
Investec SPF recently provided development finance to Kier Property and Network Rail for their £50m mixed-use redevelopment at Redhill, Surrey.
bridget.o’connell@estatesgazette.com
