The owner of Matalan’s Merseyside distribution centre on Knowsley Industrial Park has secured a new £18m funding agreement with Lloyds Bank Commercial Banking.
Delderfield Knowsley has agreed a four-year loan with Lloyds that refinances another bank’s previous investment loan for the North West site, known as the Galaxy Distribution Centre.
The bank also provided development funding for a new 100,000 sq ft extension.
Matalan, the centre’s single tenant on a 25-year lease, will transfer operations from its existing site at Skelmersdale to improve its distribution capabilities.
Work on the new extension is scheduled to complete this month.
The national retailer’s headquarters is currently being developed on an adjacent site on the industrial park.
Delderfield’s Chris O’Brien said: “The distribution centre is a key strategic hub for the Matalan Group. With Lloyds Bank’s support, we will be able assist in improving its operational efficiency and build capacity for growth in existing and new markets.
“The bank’s expert understanding of the dynamics of the industrial and logistics real estate markets was evident throughout the process, while its appetite to support us was made clear through its commitment to not only refinance the site’s existing debt but to also help fund its ongoing development.”
Eric Day, relationship director of Lloyds’ mid-markets real estate team, added: “The Galaxy Distribution Centre is an integral part of Knowsley Industrial Park and a strong and highly investable asset.
“The opportunity to support a new customer with its long-term ambitions in such a strategically important area for the region was one that we worked hard to achieve.”
The wider Matalan business is a customer of Lloyds Bank Commercial Banking’s mid-markets team in the North West.
bridget.oconnell@estatesgazette.com
