B&M’s £10.8m funding for new warehouse

NORTH West discount shopping chain B&M Retail has clinched a £10.85m funding line to buy a new warehouse and distribution base in the region.

The facility from Lloyds TSB Corporate Markets will be used to help the company, currently based in Blackpool, buy a new, 618,000 sq ft industrial distribution warehouse, known as The Vault, on the Liverpool International Business Park in Speke.

Formed in 1976 and bought by Altrincham-based brothers Simon and Bobby Arora in 2005, B&M Retail is one of the fastest-growing retailers in the country.
From its first store in Blackpool, the business has grown to over 180 stores across the UK employing over 5,000 staff
. 
The new warehouse will enable the business to continue its expansion, which is currently running at a rate of one new store opening every week.

The funding package, which includes senior debt and interest hedging, was put together by John Williams, relationship director for the bank’s North West Corporate Real Estate team.

Simon Arora, joint managing director of B&M Retail said:  “The group has seen exceptional growth over the last few years despite the economic climate.

“As a result, we needed to ensure that we had a property that was capable of handling our increasing distribution and administration operation.

“Although this is our first property deal with Lloyds TSB Corporate Markets, we’ve known the bank for number of years and built up a strong relationship over that period.  

“John and his team have demonstrated they have the local knowledge, dedication and property expertise which we needed.”

John Williams added:  “B&M Retail Limited is a fantastic business, and we’re delighted they have chosen us to help them deliver their new distribution premises.

“The Vault is a sure sign that commercial property deals, particularly in the industrial market, can be done.”