Investec has completed its first industrial open storage (IOS) transaction after providing an £11.3m loan to Kennedy Wilson to fund the acquisition and repositioning of a South London site.
The facility will support the purchase of Horatius Way in Croydon (main picture), a 4.6-acre freehold IOS asset providing around 186,500 sq ft of open storage space.
The site sits within the established Purley Way and Beddington industrial corridor, one of South London’s key logistics locations.
Formerly occupied by BT, the asset benefits from strong connectivity to central London, the M25 and the wider motorway network. It also has existing planning consent for industrial and storage uses, with additional planning optionality providing longer-term strategic value.
CAPITAL WORKS
The loan will enable Kennedy Wilson to carry out targeted capital works, including upgrades to surfacing, security and utilities, as well as subdivision of the site.
Once repositioned, the scheme will offer flexible, secure accommodation suited to occupiers such as logistics operators, fleet users, construction firms and urban distribution businesses.
Industrial open storage is increasingly viewed as a core logistics sub-sector, with demand driven by e-commerce growth, last-mile delivery requirements and the electrification of vehicle fleets. Supply remains constrained, particularly across established South London industrial corridors.
DEBUT INVESTMENT
Mike Russell, Investec Real Estate, said: “Having established a strong track record of financing best-in-class industrial and logistics assets, this facility marks our debut investment in a growing subsector that is supported by attractive underlying fundamentals and further enhances our client offering.
“It also reflects our ability to work closely with experienced sponsors to deliver tailored, asset-backed financing solutions that support clearly defined value-creation strategies. This financing enables Kennedy Wilson to execute its business plan efficiently, enhancing the quality and flexibility of the accommodation to meet occupier demand in South London.”
INVESTMENT STRATEGY
Joe Taylder, Kennedy Wilson, added: “Investec’s support has been instrumental in enabling the acquisition and repositioning of Horatius Way.
“Their understanding of the industrial open storage sector and collaborative approach to structuring the facility has provided us with the flexibility and certainty required to progress our investment strategy.
“We value the partnership and look forward to working together as we enhance the site to meet growing occupier requirements.”
