Lloyds refinances new Matalan HQ
Delderfield Knowsley, the Matalan investment vehicle for its new North West distribution centre on Knowsley Industrial Park, has secured an £18m funding agreement with Lloyds Bank Commercial Banking.
Under the four-year deal, Lloyds Bank has refinanced another bank's previous investment loan for the site, which is known as the Galaxy Distribution Centre, and provided development funding for a new 100,000 sq ft extension.
Matalan, the centre's single tenant on a 25-year lease, will transfer operations from its existing site at Skelmersdale to improve its current distribution capabilities. Work on the new extension is scheduled to be completed in March 2014.
The national retailer's office headquarters building is currently being developed on an adjacent site on the industrial park.
Chris O'Brien, of Delderfield, said: "The distribution centre is a key strategic hub for the Matalan Group. With Lloyds Bank's support, we will be able assist in improving its operational efficiency and build capacity for growth in existing and new markets.
"The bank's expert understanding of the dynamics of the industrial and logistics real estate markets was evident throughout the process, while its appetite to support us was made clear through its commitment to not only refinance the site's existing debt but to also help fund its ongoing development."
Eric Day, relationship director from Lloyds Bank Commercial Banking's Mid-Markets Real Estate Team, added: "The Galaxy distribution centre is an integral part of Knowsley Industrial Park and a strong and highly investable asset.
"The opportunity to support a new customer with its long term ambitions in such a strategically important area for the region was one that we worked hard to achieve."
The wider Matalan business is a customer of Lloyds Bank Commercial Banking's mid-markets team in the North West.