MCR Property to make £100m industrial push
ICG Real Estate has agreed to fund the Manchester-based developer’s purchase, refurbishment, and expansion of six commercial projects, including one in Middleton.
The £100m debt facility is secured against MCR Property Group’s current portfolio of ten assets comprising more than 1m sq ft. Most of the portfolio is warehouses, but it also includes residential developments and flexible office space.
MCR Property will use the debt facility to move forward with its plans to expand its industrial assets. The developer plans to buy sites in Avonmouth, Sheffield, Swindon, Exeter, and Bridlington in addition to Middleton.
The Middleton site is more than seven acres and is accessed off Greenside Way. It contains a more than 53,700 sq ft building, which is let to Jacques Products on a ten-year lease that began in January 2020.
MCR Property said the majority of the debt-facility-funded schemes would be split up into smaller units, which are in high demand. Smaller rental assets result in higher yields and more stable income, according to the company.
“This investment is in line with our strategy of funding properties or portfolios with value-add potential, especially where underpinned by an existing cash flow and/or in supply-constrained sectors such as industrial or residential,” said ICG Real Estate co-head Martin Wheeler.
“We are pleased to be extending our existing valued partnership with MCR Property Group, who bring a long track record of identifying and realising such opportunities in both commercial and residential properties,” he continued.
MCR Property founder and chief executive Aneel Mussarat said the development company was looking “forward to continuing to demonstrate our commercial edge to our partners ICG Real Estate”.
Mussarat also shared how the deal fits into the company’s future.
“This facility is central to our core strategy of securing mid-market commercial opportunities with strong long-term income potential and potential mixed-used development,” he said