A speculative 450,000 sq ft Cheshire logistics scheme is to be funded by a European Union-funded local investment vehicle.
The North West Evergreen Fund, which uses European Union funding to stimulate development, and Cheshire and Warrington Local Enterprise Partnership, have provided nearly £7m of investment to fund the first phase of Redsun’s new Aviator scheme at Hooton Park, Ellesmere Port. The site was acquired from Homes England.
The development, which is the largest speculative build to take place in Cheshire in several years, will provide 125,000 sq ft of valuable logistics space in a market with constricted supply. It is the first phase of a larger scheme, which is expected to deliver a total of 450,000 sq ft of new space, which once complete will create up to 300 local jobs in the local area.
Redsun has appointed Caddick Construction as main contractor on the development scheme with works due to start immediately. Completion is due in January 2020.
Ellesmere Port is a well-established industrial location and the area has undergone extensive development over the past 10-15 years. Other occupiers in the area include Vauxhall Motors, Jaguar Land Rover, Prowell and Johnson Controls.
The North West Evergreen Fund, managed by CBRE’s Investment Advisory team, part of CBRE Capital Advisors, has provided a £5m development loan to Redsun. The Fund has been the catalyst for the delivery of over £500m of employment infrastructure over the last five years and is now in its third investment phase. It is focused on opportunities which meet employment, regeneration, carbon saving and floor space output targets. There remains capacity in the Fund for a number of further investments, and the Fund Managers encourage applications.
The North-West Evergreen Fund exists to support the delivery of commercial property and infrastructure projects in Greater Manchester, Cumbria, Cheshire and Lancashire.
The funds, which are supported by European Regional Development Funding and the JESSICA Programme as well as by 16 local authority partners, are a new approach to investment which sponsors a wide range of development opportunities where there is a clear benefit to the region’s employment, regeneration, environmental and economic prospects.
The funds will commit capital to commercial and light industrial regeneration opportunities, which meet European Regional Development Fund regeneration targets covering employment, remediation and floorspace outputs.
Developers with commercial property or infrastructure projects that can both drive regional economic growth and generate a financial return are able to apply to CBRE, who is the General Partner Real Estate Advisor to the funds, for loans.
Money from the repayment of these loans will be recycled back into the fund to finance new projects. By backing sustainable schemes through an innovative mix of public and private funding, the partnership intends to underpin the region’s long-term growth prospects.