Investec Bank plc has provided Kennedy Wilson with an £11.3 million facility to fund the acquisition and repositioning of Horatius Way, a prime industrial open storage (IOS) site in Croydon, South London.
The loan marks Investec’s first transaction in the IOS sub-sector and expands its exposure to logistics assets at a time when demand for open storage sites continues to rise.
The 4.6-acre freehold site, previously occupied by BT, offers around 186,500 sq. ft of open storage space. It sits within the established Purley Way and Beddington industrial corridor, one of South London’s key logistics and industrial hubs, with direct access to Central London, the M25 and the wider motorway network.
The facility will support Kennedy Wilson’s plans to carry out targeted capital works to upgrade the site. These improvements are intended to reposition the asset and broaden its appeal to a wider range of occupiers.
Planned upgrades include:
Improvements to surfacing and security
Enhancements to utilities infrastructure
Subdivision of the site to create more flexible space
Once repositioned, the scheme will provide secure accommodation for occupiers such as logistics operators, fleet businesses, construction firms and urban distribution companies. The site already benefits from planning consent for industrial and storage uses, with additional planning options that could support its long-term value.
Industrial open storage is becoming a core part of the wider logistics market. Growth has been driven by e-commerce expansion, last-mile delivery needs and the electrification of commercial vehicle fleets. In London, demand for well-located open storage sites remains strong, while supply is limited, particularly within established South London corridors.
“Having established a strong track record of financing best-in-class industrial and logistics assets, this facility marks our debut investment in a growing subsector that is supported by attractive underlying fundamentals and further enhances our client offering,” said Mike Russell, Investec Real Estate.
“It also reflects our ability to work closely with experienced sponsors to deliver tailored, asset-backed financing solutions that support clearly defined value-creation strategies. This financing enables Kennedy Wilson to execute its business plan efficiently, enhancing the quality and flexibility of the accommodation to meet occupier demand in South London.”
Kennedy Wilson said the structure of the facility supports its wider investment strategy for the site. “Investec’s support has been instrumental in enabling the acquisition and repositioning of Horatius Way,” said Joe Taylder.
“Their understanding of the industrial open storage sector and collaborative approach to structuring the facility has provided us with the flexibility and certainty required to progress our investment strategy. We value the partnership and look forward to working together as we enhance the site to meet growing occupier requirements.”
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