£22.3m funding supports industrial portfolio deal | Yorkshire Property News
A £22.3 million financing agreement has been agreed to support the acquisition and refurbishment of a portfolio of distribution and manufacturing assets in West Yorkshire.
Tristan Capital Partners’ TIPS One “Income Plus” real estate debt fund has provided £22.3 million of senior real estate debt financing to Melburg Capital under a five-year loan.
The acquired portfolio includes Sirdar Business Park, a 23-unit multi-let site spread over 370,051 square feet on a 16-acre site, and Wakefield 41, a 210,000 square-foot lot on an eight-acre single-let estate.
The assets will be renovated on an ongoing basis alongside a number of property management initiatives, including improving the energy performance of properties, to offer higher rents.
Dan Pottorff, Head of Debt Investing at Tristan Capital Partners, said: “TIPS One’s strategy is to provide funding to assets with the potential for revenue and capital growth and to support sponsors who can achieve this. potential.
“These assets are well-located and poised to capitalize on demand in an undersupplied market that is benefiting from tailwinds resulting from the ‘offshoring’ of supply chains. Melburg Capital is a sponsor with the right track record and skills. to deliver the business plan.”
Ashil Sodha, Director, Debt Investing at Tristan Capital Partners, added: “This transaction marks our first in the industrial and logistics sector as we seek to diversify and expand the parameters of the TIPS One fund.
“This funding demonstrates Tristan’s continued belief in the industry and major distribution sites such as Wakefield, whose strength was reaffirmed by the recent sale of Amazon’s two million square foot warehouse to nearby Wakefield hub. We look forward to working with Melburg and others to develop the partnership to support their aggregation strategy.
The assets are expected to benefit from strong occupier demand due to their proximity to major transport hubs with access to the M62 and M1 corridor providing easy access to ports on the East Coast and West Coast, while supplying the major north-south highways. .
BBS Capital acted as debt advisor to Melburg.
Jack Burgess, Managing Director of Melburg Capital, said: “It has been a pleasure working with the Tristan team. We look forward to integrating additional acquisitions into the facility as our UK-focused industrial platform, which now exceeds two million square feet, continues to grow organically.”
Adam Buchler of BBS Capital added: “This transaction is our first with Tristan Capital and we look forward to growing the relationship from here. We are delighted to have arranged this highly customized and competitive facility for our client Melburg. as we continue to work with them to support their growth strategy.
Tristan Capital Partners was advised by Eversheds Sutherland. Freedman + Hilmi and Burgess Okoh Saunders advised Melburg.