Puma Property Finance fund development of Logistics City MK

Puma Property Finance has provided a £21m loan to Kier Property to fund the development of a new industrial logistics unit in Milton Keynes. Kier Property, part of the FTSE 250-listed Kier Group plc, specialises in urban regeneration by investing in and developing mixed-use commercial and residential sites cross the UK. The funding will be used to develop a 125,647 sq ft Grade A industrial facility known as ‘Logistics City MK’. The scheme will deliver 112,860 sq ft of warehouse space and 12,787 sq ft of office space and outdoor amenity spaces. The development is located within the logistics ‘Golden Triangle’, near the M1 motorway and Milton Keynes Central Station. The six-acre site previously housed a 66,493 sq. ft. warehouse building and adjacent office block with car park. It will include two separate HGV and vehicle access points, car park spaces with 15 electric vehicle charging points, rooftop photovoltaic solar panels, energy efficient lighting, air source heat pump and 42 cycle spaces. The development is targeting completion in early 2026. It is Puma’s second industrial scheme in recent months, having previously provided a £15m loan facility for a low-carbon industrial development in North Yorkshire in February. Leigh Thomas, group managing director from Kier Property, said: “Logistics City MK represents the next generation of sustainable industrial space and this partnership demonstrates our shared commitment to delivering high-quality, environmentally-responsible developments. We look forward to seeing the scheme come to life and building a strong relationship with Puma as we continue to expand our Logistics City portfolio.” Kent Lawrence, senior manager at Puma Property Finance, added: “We are delighted to be partnering with Kier Property, an institutional client with a strong track record having successfully delivered over 50 industrial and logistics developments totalling more than 6.7 million sq ft across their Trade City and Logistics City brands. Logistics City MK is a strong asset located in a prime distribution area and will feature top-tier specifications and the highest sustainability criteria. We continue to target likeminded stakeholders and provide a sustainability linked facility that rewards ambitious developers. “More broadly, the industrial sector remains attractive to us as a funder due to the rebasing of values in recent years and provides an opportunity for us to continue diversifying our sector exposure. We look forward to seeing the scheme develop and growing our relationship with Kier.”