Tungsten Properties has secured a €57.3m (£50m) revolving credit facility from Fortwell Capital, a principal lender to developers and investors within the UK real estate sector. The credit facility will be used to finance the development of Tungsten Properties’ €206.2m (£180m) logistics development pipeline, amounting to 1.5 million ft² of high-quality industrial space across the UK, over a period of 36 months.
The deal was seeded by a €5m (£4.4m) tranche in September 2019 which has enabled the development of Tungsten Park Witham in Essex, a 40,000ft², three-unit industrial and logistics scheme which is due to be completed in September 2020. Other schemes to benefit from the capital will include Tungsten Park Witney to fund Phase 1 of its 490,000ft² development; the balance will be used for further land acquisitions.
Jeff Penman, managing director, Tungsten Properties said: “With the certainty of funding provided by the new facility, we can now unlock the potential of our existing schemes with greater controlling interest and grow our portfolio with new site acquisitions across the country. Our mission continues to be to provide exceptional industrial and warehouse workspace to occupiers so that they can thrive and create local jobs for their communities while delivering investment return."
Nikos Yerolemou, associate director, Fortwell Capital: “Take-up in the logistics sector remains strong and vacancy rates are lower than they have been in decades. With the structural changes facing retail, the current demand is for Grade A space from a number of high-profile businesses in the supply chain. Tungsten Properties’ development pipeline is a very attractive lending opportunity, given the developer’s longstanding track record of delivering high-end schemes that match market demand.”
