Fox Valley receives major development loan
A £42m mixed-used regeneration scheme in South Yorkshire has secured a £10m development loan.
The 28-acre Fox Valley site on former Outokumpu steelworks land in Stocksbridge is set to create up to 900 new jobs. Work began on the site last month, with the main construction work expected to complete towards the end of 2015, ready for opening early in spring 2016.
The north Sheffield project by developer Dransfield Properties has secured the loan from Lloyds Bank Commercial Banking.
The development will include around 50,000 sq ft of new office space and 110,000 sq ft of new retail and restaurant units, anchored by a 63,000 sq ft Tesco with a 635 space car park. A new link road and roundabout is being built to the A616.
Dransfield Properties is also working with Stonebridge Homes to build 114 new homes as part of the development.
In addition, the company is relocating the Tata Steel stockyard to a new 75,000 sq ft warehouse currently under construction.
The contract to build the ambitious town centre development has been awarded to Henry Boot. The development has been designed by the Sheffield firm of architects Dixon Dawson.
Mark Dransfield, managing director of Dransfield Properties, said: “Lloyds Bank has supported our business for 15 years. Their funding and advice has been pivotal to our growth during this period. As we embark on what is one of our largest and most complex schemes yet, their involvement is once again essential and highly valued.
“The scheme is already attracting significant interest from major retail brands and we have secured a number of pre-lets from both national and independent companies. We’ve been developing plans for Fox Valley for a number of years and are very excited about being in a position to bring it forward this year.”
Tom Cross, relationship director from Lloyds Bank Commercial Banking’s Mid-Markets Real Estate team, added: “Fox Valley will be one of the largest and most significant developments to get underway in South Yorkshire in 2014 and there are few better placed to make it a success than Dransfield.
“From a banking perspective, Fox Valley is a complex project. However, we are proud to be their main funding partner and to be able to provide support to a scheme that will bring new life to a former industrial site, and which will create hundreds of new jobs.”
Dransfield Properties has also received an investment of £8,111,040 from the Yorkshire and Humber ERDF Programme 2007- 2013, which is managed by the Department for Communities and Local Government, to bring forward the Fox Valley project.
Lloyds Bank Commercial Banking was advised by Squire Sanders and JLL. Dransfield was advised by JMW Solicitors.
