Fortwell Capital has started the new year by agreeing to a €17.3m (£14.4m) loan to Arcus PCD for the development of a new logistics scheme in Crawley, West Sussex, UK, with the equity supplied by Fairbairn Capital. The facility will be used to develop a 91,000ft² scheme which will comprise 7 new units in the established industrial location of Pease Pottage, the main commercial centre in the region, just to the south of Gatwick Airport and the major M23 motorway. Planning permission was granted in June 2021, with construction due to commence this month. Completion of the development is expected in Q3 2022. The deal is firmly aligned with Fortwell Capital’s strategy of lending capital within sectors and regions where there is an abundance of commercial activity, accessibility, and high demand for quality assets.
The site is located at junction 11 of the A23, just 2.6 miles south of Crawley, which as part of London’s commuter belt benefits from excellent transport connections. The scheme is targeting the mid-box market, where there has been a lack of new supply in the region and offers comparatively good value for occupiers compared to the more expensive surrounding markets.
Nikos Yerolemou-Ennsgraber, Director, Fortwell Capital, commented: “Crawley is a long-established logistics hub due to its close proximity to Gatwick Airport and strong transport links to London. Demand for mid and big-box logistics units has remained high throughout the pandemic and as such Fortwell is seeking to continue expanding its’ industrial lending portfolio. Limited construction of new product in the area means we expect leasing activity to continue positively, and we are delighted to be working with a high-quality sponsor in Arcus and Fairbairn to deliver this scheme.”
Robert O’Hara, Director, Arcus commented: ‘We are very pleased to be working with Fortwell Capital, being able to deliver a freehold multi-unit estate in such a prime location. ‘Midpoint 23’ will deliver a range of Grade-A units for occupation Q3 2022. In a region where there is currently a very limited supply.’
Alexander Gazzi, Director, Fairbairn Capital, commented: ‘This acquisition fulfils our strategic goal to back leading developers and invest in prime sites in strong sectors. Midpoint 23, when completed, will be a rare freehold multi-let estate investment in an unparalleled location off Junction 11 of the M23. We are excited by the industrial space and look to deploy more of our equity in this sector in 2022.’
