£6.6m loan bring forward new distribution centre scheme
Lender Fortwell Capital has completed a new £6.6mn loan to Mm Capital for the acquisition and repurposing of an industrial site in Shrewsbury.
The cash will be used to buy the 19 acre-site, forming part of Battlefield Enterprise Park, Shrewsbury’s premier logistics quarter, from Stadco. Works will create new space that the firm says matches the strong regional demand for e-commerce distribution centres.
The new development which will be known as Nine Bridges Industrial Park, plans to sub-divide the main 300,000 sq ft industrial complex and adjacent administrative office building into smaller units, ranging from 10,000 to 45,000 sq ft, to accommodate multiple occupiers seeking new modern warehouse space. The site is currently being used as a Tier 1 supplier to the automotive industry, with notable operators at the wider Battlefield Enterprise Park including Volkswagen, Mercedes Benz, Veoila, Ford and Screwfix. The site being repurposed will be acquired with vacant possession.
Nikos Yerolemou-Ennsgraber, director, Fortwell Capital, said: “Despite being incredibly well-located, Shrewsbury has seen very limited modern industrial development in recent years. Demand has outstripped supply for commercial properties in the area, and we anticipate that the growth of e-commerce will continue to accelerate this trend as more and more businesses look to strengthen their distribution capabilities on the outskirts of key urban centres. A major strength of Mm Capital’s proposition at Battlefield Enterprise Park is that the buildings are already in existence, offering an ideal break up opportunity to maximise value across multiple occupiers.”
Peter Leonard, managing director, Mm Capital, said: “With the new funding secured from Fortwell, we are able to create a series of new modern units in a commercial gateway location that has access to a significant regional market, where such assets have traditionally been in short supply. The Fortwell team have been an excellent financial partner on this transaction, and it’s a credit to their expertise and experience that we were able to complete this deal during the extraordinary events of the last year.”