CBRE said its lending team has made a £54 million whole loan on behalf of South Yorkshire Pension Fund (SYPF) for Panattoni Park Central A1(M), by junction 34 of the A1(M).
The loan, which will support the delivery of the 770,000 sq ft unit of the Central A1(M) scheme near Doncaster, is the largest the pension fund has made to a single project since its inception in 2019.
“The 770,000 sq ft industrial and logistics unit, is tipped to be the largest speculative development in the north of England,” said CBRE.
“The development is targeting best in class environmental credentials, including. BREEAM Outstanding, EPC A+ (offices) and A (warehouse) with net carbon zero in construction.
“The fund, which supports investment in South Yorkshire and the ongoing economic growth of the region, has been managed by CBRE’s lending team since 2019.
“To date, it has allocated approximately £200mn across 11 loans to local projects, most recently providing £46mn to develop a 496-bed purpose built student accommodation scheme in central Sheffield, and £33mn to support the development of a 367,000 sq ft industrial unit in Shepcote.”
George Graham, Fund Director at South Yorkshire Pensions Authority, said: “The northern industrial and logistics market is one of the most resilient in the country, reporting growth in take up and decreasing availability of space.
“Market conditions are therefore not only favourable for this development, but it will also benefit greatly from its environmental credentials and excellent connectivity in an established region.
“At the same time, a development of this scale will create a new employment space, with a forecast of 632 jobs – contributing to the socio-economic growth of the local area.”
Andrew Antoniades, Head of Lending, CBRE, said: “Our lending platform has long supported development across the UK with debt, and always supported key regional markets.
“This new loan is a strong investment for our South Yorkshire lending programme to a best-in-class sponsor and will drive job creation and economic growth in the area.
“Providing flexibly structured debt finance is crucial to our offering and we continue to have strong appetite for loans across all key asset classes with similar attractive characteristics.”