A 200,000 sq ft speculative Salford logistics scheme is to go ahead, following support from a funding pot seeded by the European Union.
Vengrove, the real estate investment management firm, has been given an £8.5 million senior loan to finance the development of at Agecroft Commerce Park, Salford.
The speculative development loan was provided by the North West Evergreen Fund to Vengrove, which was established in 2013 with European Union seeding to generate superior risk adjusted returns through investing in commercial real estate.
The project will deliver two logistics units, collectively known as “Evolution”, on the Agecroft Commerce Park. The scheme is due complete in autumn 2018. The development site is currently brownfield land and once complete and operational, will provide 200,000 sq ft of energy efficient space, estimated to create over 250 jobs. Savills, DTRE and BC Real Estate have been retained by Vengrove to market the units for occupation.
The North West Evergreen Fund is managed by CBRE’s Debt Investment Advisory team, part of CBRE Capital Advisors, and provides debt funding for commercial property and regeneration projects in the North West of England.