Investec Real Estate has provided a £42.3 million loan to a joint venture between Aureon Partners, advising the Quilvest real estate funds, and Arax Properties, to support Falcon Business Park in Loughborough. The loan is secured against the site on Meadow Lane (LE11 1HL).
The facility refinances the sponsors’ existing financing on the fully let, income-producing estate and provides additional funding for the development of five new speculative industrial units within the park.
The existing estate covers around 635,000 sq ft and is fully let to a diversified occupier base, while the new build phase will add a further 108,000 sq ft of modern industrial space. This will take the park’s total built floor area to roughly 743,000 sq ft, or around 841,000 sq ft including open storage land.
Aureon Partners and Arax’s business plan focuses on sustaining the estate’s contracted income while delivering new units designed to meet ongoing demand for well-connected Midlands industrial accommodation. The site benefits from strong transport links, including:
- close proximity to the A6 and the M1 (junctions 23 and 24)
- nearby East Midlands Airport
- Loughborough rail station
“This transaction reflects a focus on delivering financing that supports both immediate priorities and longer-term plans,” said Tom Griffiths, Investec Real Estate.
“By refinancing the stabilised estate while funding new development within the park, Investec has provided Aureon Partners and Arax with a structure that offers near-term certainty and the flexibility to pursue value creation over time.”
Andreas Rentsch, Aureon Partners, welcomed the deal. “We are delighted to partner with Investec on our investment in Falcon Business Park,” he said.
“Their understanding of the asset and the local market was combined with a highly responsive and solutions-focused approach. We look forward to delivering the next phase of our development at Falcon Park North with them.”
The transaction builds on Investec Real Estate’s track record of supporting UK industrial and logistics assets. Recent examples include a £50 million facility with Investec REALIS and Wrenbridge for a North Cambridge development opportunity, delivering around 80,000 sq ft of flexible commercial space for occupiers, including logistics users.
Investec REALIS has also partnered with Wrenbridge on a £90 million GDV urban logistics deployment, delivering speculative development across Greater London and the South East. Separately, Investec provided a £135 million facility to CDS Superstores to refinance two major logistics assets in Stowmarket and Avonmouth, totalling 2.3 million sq ft of distribution capacity.
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