North West Evergreen Fund kick-starts speculative industrial development
The North West Evergreen Fund has provided a £10.75m loan to InfraRed Capital Partners to fund 172,000 sq ft of speculative industrial development at a brownfield site in Little Hulton, Salford.
The senior loan will be used to fund the construction costs to deliver the site, which will be targeted at a range of industrial occupiers.
Once complete it will have industrial units ranging from 10,750 sq ft to 61,000 sq ft and will have the potential to support 413 new jobs in the region.
The development is being forward-funded by InfraRed Capital Partners with Network Space as its development partner and will reach practical completion next year.
The project is within close proximity of Logistics North, one of the premier industrial developments in the North West and a project previously funded by Evergreen investment.
The North West Evergreen Fund is managed by CBRE’s investment advisory team, part of CBRE Capital Advisors.
This latest investment takes the fund to more than £200m of loan commitments in the region since its inception in 2014.
It has been the catalyst for the delivery of more than £500m of employment infrastructure over the past five years and is now in its third investment phase. It is focused on opportunities which meet employment, regeneration, carbon saving and floor space output targets.
William Church, senior director, CBRE Capital Advisors, said: “Support for this type of project in the current climate is critical, particularly for the creation of new jobs and delivery of speculative employment space in the North West.
“Despite the challenges presented by COVID-19, we are seeing more applications to the Evergreen Fund than ever before with developers still showing appetite to develop out good schemes.
“We are very pleased to be working with InfraRed Capital Partners and supporting them in their investment in the North West Industrials sector.”
Michael Logan, investment director at InfraRed Capital Partners, said: “We are very pleased to have developed a strong relationship with CBRE Capital Advisors, who understood our funding requirements during the development phase of this high-quality asset located only nine miles from Manchester city centre.
“The site benefits from good transport links, increasing urbanisation and high levels of tenant demand.
“The investment is highly complementary to our growing portfolio of North West industrial, distribution and logistics assets.”