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.
Managed by CBRE’s Investment Advisory team, the North West Evergreen Fund’s senior loan will be used to fund the construction costs to deliver the site, which will be targeted at a range of industrial occupiers.
William Church, Senior Director, CBRE Capital Advisors commented: “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 [an] 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.”
Located within proximity of one of the premier industrial developments in the North West, Logistics North, the speculative project is aiming to reach practical completion next year.
Once complete, the development will feature a selection of 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.
Michael Logan, Investment Director at InfraRed Capital Partners, commented: “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.”
North West Evergreen Fund has been the catalyst for the delivery of over £500m of employment infrastructure over the last five years, and this latest investment by the Fund takes its total loan commitments in the North West to over £200m since the Fund’s inception in 2014.