Lloyds Bank has refinanced Matalan’s Galaxy distribution centre in Knowsley, Merseyside, in an £18m deal. The cash will go towards a new 100,000 sq ft extension.
Lloyds will refinance another bank’s previous investment loan for the site, in a deal covering a four-year term.
Matalan is the centre’s sole tenant, on a 25-year lease. It will transfer existing operations from Skelmersdale, Lancashire, to improve its distribution capabilities.
Work is due to be completed on the new extension in March.
Delderfield Knowsley owns the site.
The retailer’s headquarters building 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 to 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.”
Lloyds Bank Commercial Banking relationship director Eric Day said: “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.”
chris.berkin@estatesgazette.com
