Leicestershire developer snags £50m facility to fund UK pipeline

A Leicestershire-based mid-box industrial and warehouse developer has secured a £50 million revolving credit facility from Fortwell Capital which it will use to finance its £180 million logistics development pipeline.

Tungsten Properties – whose developments include Access 20, an 129,000 sq ft warehouse at Lutterworth – says the facility will help it to develop 1.5 million sq ft of industrial space over a period of 36 months.

The deal was seeded by a £4.4 million tranche in September 2019 which has enabled the development of Tungsten Park Witham in Essex –  a 40,000 sq ft, three unit industrial and logistics scheme which is due to be completed in September 2020.

Phase 1 of Tungsten Park Witney will also benefit from the capital, with the balance being put towards further land acquisitions.

Captima Capital acted on behalf of Tungsten.

Jeff Penman, managing director at Tungsten Properties said: “With the certainty of funding provided by the new facility, we can now unlock the potential of our existing schemes with a 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 at Fortwell Capital, added: “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.”