April 17, 2023
Fiera Real Estate UK (“Fiera”) and Wrenbridge are pleased to announce that they have agreed a £19m development facility arranged by Brotherton Real Estate with Alpha Property Lending to part fund the speculative construction of their 189,536 Grade A industrial scheme ‘Spark’ in Bishops Stortford.
Fiera and Wrenbridge secured planning at their 8.5-acre site for twelve units, in five buildings in Q4 2022. Ground works have been completed, with Readie Construction Ltd appointed to fulfil the main body of works. The units will range in size from 2,422 sq.ft to 60,473 sq.ft and are designated for B2, B8, E(g)(ii) and E(g)(iii) uses. Specifications for the new scheme include 8-12m clear internal heights, 50kN/sq m floor loading, surface level and dock level loading doors and self-contained service yards for larger units.
The scheme will be targeting net zero carbon construction, BREEAM ‘Excellent’ and EPC ‘A’ rating. It will feature photovoltaic panels and energy-efficient lighting and heating and cooling systems will be installed to encourage reduced energy consumption. EV charging points and cycle parking are also included in the design.
The site was purchased on behalf of Fiera Real Estate Opportunity Fund V UK (“FREOF V UK”), the fifth fund in Fiera’s £600m series which completed its final close in February 2022 with £180m of equity committed.
Spark is situated on an area of urban expansion land to the south of the town which is being redeveloped for 750 new homes, new schools, local centre, and employment space. It benefits from excellent transport links to the Bishop’s Stortford ring road, M11 and M25 and is within 15-minutes’ drive of London Stanstead Airport.
James Feltham, Director of Wrenbridge commented “We are delighted to have secured financing with Alpha Property Lending for this high quality scheme which will help meet the sustained demand for local, regional and national businesses in the Bishops Stortford and wider M11 market. Construction of the scheme will complete in December 2023 and we have really strong engagement from the occupier market.”
Chris Button, Fund Manager at Fiera, commented “We are really pleased to have secured financing for the scheme which will help to fill the dearth of supply of Grade A logistics in the M11 corridor. We have significant funding for more speculative industrial and logistics developments in major urban locations.”
Mert Zabci, Lending Director at Alpha Property Lending commented “It has been great to be able to support Fiera & Wrenbridge with this scheme targeting the highest ESG credentials and in an area with a dearth of Grade A industrial units available. We look forward to supporting the team with further projects in 2023.”
Ben Rustin, Director at Brotherton Real Estate commented “Lenders’ appetite to fund speculative industrial development is increasing. Strong occupier demand coupled with an under supply of available Grade A industrial stock continues to reduce the risk profile typically associated with speculative development.”
Mert Zabci, Lending Director at Alpha Property Lending commented “It has been great to be able to support Fiera & Wrenbridge with this scheme targeting the highest ESG credentials and in an area with a dearth of Grade A industrial units available. We look forward to supporting the team with further projects in 2023.”
Brotherton and Forsters acted for Fiera and Wrenbridge on the financing facility. Coke Gearing and CBRE are the leasing agents on the scheme.