Investec has provided a £42.3m loan to a joint venture between Aureon Partners and Arax Properties to refinance and expand Falcon Business Park in Loughborough.
The transaction highlights continued lender appetite for well-located industrial and logistics assets, despite wider uncertainty across parts of the commercial property market.
The facility is secured against Falcon Business Park, a fully-let multi-let industrial estate extending to approximately 635,000 sq ft, and includes funding for a speculative development phase that will add a further 108,000 sq ft of industrial accommodation.
Once complete, the scheme will comprise around 743,000 sq ft of built space, rising to approximately 841,000 sq ft when associated open storage land is included.
LOGISTICS DEMAND
The funding package refinances the sponsors’ existing debt while providing capital for the next stage of development, enabling the joint venture to enhance long-term value while maintaining income from the stabilised estate.
Located close to the A6, M1, East Midlands Airport and Loughborough railway station, the park occupies a strategic position within one of the UK’s key industrial corridors.
Tom Griffiths, of Investec Real Estate, says: “This transaction reflects a focus on delivering financing that supports both immediate priorities and longer-term plans.
“By refinancing the stabilised estate while funding new development within the park, Investec has provided Aureon Partners and Arax with a structure that offers near-term certainty and the flexibility to pursue value creation over time.”
SOLUTIONS FOCUSED APPROACH
Andreas Rentsch, of Aureon Partners, adds: “We are delighted to partner with Investec on our investment in Falcon Business Park.
“Their understanding of the asset and the local market was combined with a highly responsive and solutions focused approach.
“We look forward to delivering the next phase of our development at Falcon Park North with them.”
