Multi-million pound funding deal to support logistics development
The South Yorkshire Pension Fund together with the SCR JESSICA Fund has provided its first joint loan, which will support the delivery of a strategic logistics and manufacturing site.
The Funds have provided a £15.25m senior and mezzanine debt facility to support development of vital infrastructure, which will be the catalyst for delivery of a site in Bolsover, adjacent to J29a of the M1 between Sheffield and Nottingham.
The Local Enterprise Partnership for Derby, Derbyshire, Nottingham and Nottinghamshire, D2N2 LEP, has contributed a further £5.8m of grant funding towards land preparation work.
And Derbyshire County Council has also committed a further £2m grant.
The Horizon 29 scheme, being delivered by joint venture partners iSec and St Francis Group, will bring forward a total of 94 acres of employment land that can deliver 1.4 million sq ft of development.
It is expected this regeneration project will attract high quality occupiers to the site, while creating more than 2,000 jobs for the region.
Over the last five years, the SCR JESSICA and South Yorkshire Pension Funds have seen around £75m invested into the Sheffield City region across 20 separate loans to support the ongoing economic growth of the region.
CBRE’s Investment Advisory team, part of CBRE Capital Advisors, manages both Funds.
Andrew Antoniades, executive director, CBRE Capital Advisors, said: “This loan is significant as not only is it the first combined loan we have completed but it will be instrumental in enabling the successful delivery of one of the region’s premier logistics hubs.
“The facility will fund the construction of roads and other infrastructure which are essential to bring the scheme forward, providing vital support to the economic growth of the region.”
Councillor Mick Stowe, chairman of South Yorkshire Pensions Authority, said: “The timing for completion of this loan, for what will be a major new employment site for people from across the City Region, could not be better giving a boost to the local economy just as we emerge from lockdown.
“Once again this shows the benefit that can be achieved by bringing all the various sources of finance at the disposal of our City Region to bear on an issue.”
James Newman, chairman of Sheffield City Region European Funds Advisory Board and a member of the JESSICA Board, said: ‘‘This development typifies the reasons why the JESSICA Fund was originally set up.
“It was to support speculative or innovative property developments, often partnerships between the public and private sectors, which had funding gaps but were of significant strategic importance to the City Region.
“The development of this site, close to one of the Sheffield City Region’s Enterprise Zones at Markham Vale, ticks all these boxes.’’
Nigel Lax, development director from iSec, said: “We are honoured that our flagship development Horizon 29 has attracted the first ever joint funding from the South Yorkshire Pension Fund and the SCR JESSICA Fund.
“This confirms a strong commitment to developing an industrial facility that will be unparalleled in the region.”
Gareth Williams, development director at St Francis Group, added: “Funding is key to developments of this calibre and we are fortunate the funding bodies could come together on this to support Horizon29 which boosts the region’s logistics offering.”
