Developer extends £50m credit facility to fund pipeline

Tungsten Park Witney

Leicester-based warehouse developer Tungsten Properties has renewed its £50m revolving credit facility with private investment giant Cain International for a further three years.

The two firms’ relationship begun in 2019 when an initial facility of £36m enabled Tungsten to deliver industrial and logistics schemes in Witham, Witney, Oakham and Lutterworth totalling more than 440,000 sq ft.

The new facility, agreed as part of a strategy borne out of Cain’s acquisition of Fortwell Capital in 2020, will fund an extensive pipeline of logistics developments across the UK. Cain’s strategy focuses on development loans of £10m-£50m across multiple sectors.

Tungsten Properties MD Jeff Penman said: “In the last three years, there’s no doubt that our £50m revolving credit facility with Cain has enabled us to be more agile and secure great quality development opportunities. Also, it has allowed our equity to be spread across a greater number of projects.

“This RCF renewal for a further three years gives us greater firepower to respond to and consider opportunities as soon as they present themselves. We look forward to continuing this partnership with Cain and seeking out strategic opportunities to deliver much-needed industrial and distribution space.”

Nikos Yerolemou-Ennsgraber, director of real estate debt at Cain International, said:  “This transaction presented an opportunity to expand our reach across a sector with fundamentals we believe in, while meeting the growing demand for high-quality logistics assets across the UK delivered by reputable developers. At its heart, Cain is a partnerships business, and we are delighted to strengthen our relationship with Tungsten through this facility.

“With Fortwell now fully integrated into Cain’s real estate debt business, we believe that our holistic service offering provides exciting opportunities for continued deployment of capital with existing clients and new ones, across the full range of loan sizes and financing structures.”

Tungsten launched a £250m joint venture with global investment firm BC Partners in August 2022 specifically targeting single and multi-let industrial opportunities with a GDV of more than £25m.

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