Ergo Real Estate, on behalf of Aver Property (its JV with NFU Mutual) has completed deals on four key industrial schemes. The schemes are located in Middlewich (222,740 sq ft), Sheffield (191,500 sq ft), Oldham (367,160 sq ft) and Fradley (352,810 sq ft), totalling c. 1,134,000 sq ft of prime industrial space.
Aver has agreed to fund the development at each scheme with Fradley, Middlewich and Sheffield already on site and Oldham set to follow this summer. All schemes are targeted to be delivered between Q1/2 2022.
BentallGreenOak provided a c£60M programmatic facility package to facilitate the build out and delivery of the portfolio.
Aver has agreed to fund Units 1,2 and 3 totalling 222,743 sq ft at Ergo Park, Middlewich. The scheme is being developed by Total Developments, a joint venture between Stretton Property and Pioneer Design and Build.
Ergo Park sits within an established business park that provides over 1.4 million sq ft of distribution accommodation. The new units are expected to be delivered in Q1 2022.
DC2 Prologis Park, Fradley, will provide a single 352,812 sq ft industrial unit within a site of approximately 16.2 acres.
The site is strategically positioned between Staffordshire and the West Midlands, in close proximity of the the intersection for the UK’s main motorway routes, two key rail hubs and major airports.
Previous phases have already attracted Wincanton, Tesco and DHL. The unit will be developed by Prologis with a target delivery date in Q2 2022.
Ergo Park, Sheffield comprises a 4 unit scheme across 11 acres comprising a total of 191,500 sq ft.
The site is prominently located, adjacent to the Drakehouse and Crystal Peaks Retail Parks in Waterthorpe. The scheme is being delivered by Total Developments with Practical Completion expected Q1 2022.
Broadway Green, Oldham is a major mixed use development, located 5 miles south east of Rochdale and 6 miles north east of Manchester city centre. Aver has agreed to fund a single 367,163 sq ft industrial unit which will be developed by Rula Develpoments. Delivery is targeted for Q2 2022.
Martin Jepson Founding Partner of Ergo RE, says:
“The completion of over 1.1.million square feet of prime industrial space for Ergo in its third year of operation is a testament to our research led approach to investment, which enables us to target specific locations and opportunities in the logistics sector, it is the dominant investable sector of substance at this moment in time.”
James Jepson, Investment Executive at Ergo RE, says:
“The new facility underpins our ambition to ensure maximum efficiency in reinvesting proceeds from previous property sales through the second generation of developments within the fund. This initial facility represents an exciting new partnership between Ergo Real Estate and BentallGreenOak, one we would hope to extend as future opportunities become deliverable.”
Martin Sheridan, Principal of UK Debt at BGO, says:
“We are delighted to support the Ergo and NFU real estate platform on their recent large scale logistics transaction. BGO have been highly active debt investors in the UK and European logistics market over the last two years. The COVID pandemic has accelerated certain behaviour’s which mean these assets are now in greater demand than ever. Our principal lending focus is on brand new state-of-the-art buildings, in close proximity to large conurbations and arterial transport routes – facets underpinning the subject portfolio. This programmatic facility allows Aver to build out and lease up multiple properties over the next 3 years, with an ability to upsize and expand the facility as new opprotunities become available”.
Burbage Realty acted for Aver on Oldham and Fradley, M1 Agency acted on the Sheffield and Middlewich transactions. Peritus Group acted on the debt facility agreement between Aver and BentallGreenOak.
