The CBRE-managed North West Evergreen Fund has provided a £10.75m loan for InfraRed Capital Partners to complete its 172,000 sq ft Raven Locks speculative industrial scheme on brownfield land in Little Hulton, Salford.
The senior loan will be used to fund the construction costs to finish the 14-acre scheme. The gross development value is expected to be around £21m.
Once complete the project will deliver six units – three detached and three in a terrace – ranging from 10,750 sq ft to 61,000 sq ft. Work started on the development in February.
InfraRed Capital Partners appointed Network Space as development partner. Practical completion is due in February 2021.
The project is near Junctions 3 and 4 of the M61 and 15 of the M60, close to Harworth’s Logistics North, one of the largest industrial developments in the North of England and a project previously funded by Evergreen.
North West Evergreen Fund is managed by CBRE’s investment advisory team, part of CBRE Capital Advisors. This facility takes the fund to over £200m of loan commitments in the region since its inception in 2014. The fund has been the catalyst for the delivery of over £500m of employment infrastructure over the last five years and is now in its third investment phase. Evergreen is focused on opportunities which meet employment, regeneration, carbon saving and floorspace output targets.
William Church, senior director, CBRE Capital Advisors, commented: “Support for this type of project in the current climate is critical, particularly for the creation of new jobs and delivery of speculative employment space in the North West. Despite the challenges presented by Covid-19, we are seeing more applications to the Evergreen Fund than ever before with developers still showing appetite to develop out good schemes.”
Michael Logan, investment director of InfraRed Capital Partners, said: “The site benefits from good transport links, increasing urbanisation and high levels of tenant demand.”
Evergreen is funded by European Union structural aid programmes including Jessica, or Joint European Support for Sustainable Investment in City Areas, and the European Regional Development Fund.
The letting agents are JLL, DTRE and NSM.