Fiera Real Estate and Cubex have agreed a £9.4m development facility with Alpha Property Lending to part-fund their 94,000 sq ft logistics development in Swindon.
Swindon Trade Park was acquired through the Fiera Real Estate Opportunity Fund V, the fifth in Fiera’s £600m series. FREOF V UK, which held its final close in 2022, has £180m of equity committed.
Fiera and Cubex secured planning consent this year for five new trade and two new urban warehouse facilities at the site, with works due to start imminently. MCS Build has been appointed as the contractor and works are expected to complete in Q4 2024.
The finished development will provide seven high-spec units ranging between 3,000 sq ft and 36,000 sq ft. The scheme will target BREEAM Excellent and EPC A ratings as well as a biodiversity net gain exceeding 10%.
Electric vehicle charging points and solar panels are also incorporated into the design.
The financing deal marks the second industrial development financing between Fiera and Alpha, following an agreement earlier this year for a £19m development loan to partly fund construction works at Spark in Bishop’s Stortford, Hertfordshire.
Chris Button, head of investment management at Fiera, said: “Alpha has been an integral part of completing the financing agreement at Swindon Trade Park, putting us in a prime position to move forward on this significant industrial asset.”
Joe Downey, managing director at Cubex, said the financing will allow the owners “to progress the project business plan and deliver a market-leading industrial product for Swindon”.
Downey added that the owners have “significant equity available for more speculative industrial and logistics developments in major urban locations”.
Mert Zacbi, head of commercial lending at Alpha, said: “Fiera have a proven track record in the sector – our first loan with them earlier this year to fund the development of their Bishop’s Stortford scheme is due to PC shortly, with a number of units already prelet or in advanced negotiations, ahead of business plan.
“Cubex have also been a pleasure to work with on Alpha Property Lending’s first deal with them. We hope to support further Fiera and Cubex projects in the future given their strong pipeline.”
Brotherton and law firm Osborne Clarke advised Fiera Real Estate and Cubex. Law firm Burgess Salmon acted for Alpha Property Lending.
To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews
