Trammell Crow Company has obtained a £34m development loan against its site in Sheffield from the South Yorkshire Pensions Authority.
TCC will deliver a 367,151 sq ft grade-A logistics facility on a 20-acre site at Shepcote Lane, half a mile from Junction 34 of the M1. Features will include 18m clear height and floor loading capacity of 60kN per sq m with jointless concrete slabs.
The structure is capable of carrying 100% photovoltaic roof coverage and base build PV installation, along with electric vehicle charging to car parks and HGV trailer parks. It will have an EPC A rating and BREEAM Excellent certification.
The site was previously home to fencing manufacturer Betafence and before that to Tinsley Wire. The new Class B8 storage and distribution facility is expected to create 450 new jobs, with additional employment opportunities envisaged during construction. Works are expected to start this month, with completion due in summer 2023.
SYPA is the public body responsible for running the £10.8bn South Yorkshire Pension Fund, which is a part of the Local Government Pension Scheme. The pensions authority’s £80m local development loans portfolio forms part of its impact allocation, which is intended to achieve a wider range of impacts, such as job creation, while also achieving return targets.
Having launched in Europe in 2021, US-based developer TCC now has three sites in the UK, in Sheffield, Milton Keynes and most recently in Heywood near Manchester. Beyond those, it has properties in Germany, Spain and the Czech Republic.
Richard Fell, head of European logistics capital markets at TCC, said: “Securing this loan against our Sheffield site is a strong reflection of the quality of the assets that we are developing, and our site-finding capabilities in supply-constrained markets.
“Benefitting from excellent locations in prime logistics markets, built to the highest quality and sustainability standards that ensures they are best equipped to tackle the challenges and potential regulations of the future, they are strong investment opportunities.
“We are continuing to see investment appetite from equity and debt investors across our European developments and look forward to continuing to engage with everyone from local investors such as SYPA as well as European and global institutions.”
John Mounsey, chair of SYPA, said: “It is rewarding to see the pensions authority use its power as an investor to help with a number of developments across South Yorkshire while making the returns we need to pay our members’ pensions.”
CBRE and CPP are leasing agents for the scheme.
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