Investors have wagered £20m on the growth of the last-mile logistics property sector.
Investec Structured Property Finance has agreed to provide a £20m loan facility to extend its Trade City joint venture with Kier Property. The facility will assist in the joint venture’s acquisition and development of an 11.6 acre trade counter and logistics site in Thurrock, Essex.
The developed site will provide 12 trade counter units ranging from 4,000 to 11,000 sq ft under the Trade City brand. It is also the first development delivered under the joint venture to include a Logistics City scheme, providing four large logistics and distribution units comprising between 40,000 and 50,000 sq ft, aimed at last-mile logistics.
The site is strategically located in close proximity to London with excellent connectivity, sitting immediately next to key transport routes such as the M25, which has established the area as a key industrial and logistics location.
This is the fifth industrial development delivered by Investec and Kier’s joint venture, which has a combined development value of over £60m. The first two schemes achieved practical completion in July 2015 and were immediately sold above market valuation. The second two are currently under development in Oxford and Bracknell and are due to complete in March and May 2016 respectively.
