Tungsten Properties has secured a £50 million revolving credit facility from Fortwell Capital, a principal lender to developers and investors within the UK real estate sector.

The credit facility will be used to finance the development of Tungsten Properties’ £180 million logistics development pipeline, amounting to 1.5 million sq ft of high-quality industrial space across the UK, over a period of 36 months.

The deal was seeded by a £4.4 million tranche in September 2019 which has enabled development of Tungsten Park Witham in Essex, a 40,000 sq ft, three unit industrial and logistics scheme which is due to be completed in September 2020. Other schemes to benefit from the capital will include Tungsten Park Witney (pictured) to fund Phase 1 of its 490,000 sq ft development; the balance will be used for further land acquisitions.

Jeff Penman, managing director, Tungsten Properties said: “With the certainty of funding provided by the new facility, we can now unlock the potential of our existing schemes with a greater controlling interest and grow our portfolio with new site acquisitions across the country. Our mission continues to be to provide exceptional industrial and warehouse workspace to occupiers so that they can thrive and create local jobs for their communities while delivering investment return.”

The deal represents Fortwell’s first major loan to a commercial developer since January last year. In 2019, Fortwell lent £250 million across 10 separate finance facilities to UK developers which concentrated on traditional core markets including private sale residential, care homes and commercial space.

With a return to logistics, Fortwell Capital has reinforced its commitment to supporting a full range of commercial and residential developers on larger, more complex transactions. It is the first loan to complete in a busy pipeline of deals being progressed by Fortwell across asset classes, in major city centres and strong regional locations throughout the UK.

Nikos Yerolemou, associate director, Fortwell Capital: “Take-up in the logistics sector remains strong and vacancy rates are lower than they have been in decades. With the structural changes facing retail, the current demand is for Grade A space from a number of high-profile businesses in the supply chain. Tungsten Properties’ development pipeline is a very attractive lending opportunity, given the developer’s longstanding track record of delivering high-end schemes that match market demand.”

Captima Capital acted on behalf of Tungsten Properties.