A loan of £ 11.75million has been secured to finance the redevelopment of an 11-acre site in Sheffield into industrial and logistics space.

The South Yorkshire Pension Fund provided the loan to BGF4 (Sheff) LLP to finance redevelopment of land on Greenland Road to create a 191,150 square foot program.

The loan will partially finance the acquisition of the site, contribute to the regeneration of a former 130,750 square foot B&Q warehouse and develop 58,000 square feet of new industrial units.

The site is located in the suburb of Darnall, approximately 3.5 miles northeast of Sheffield city center and with highway connectivity. The Sheffield City Council Planning Authority has approved the comprehensive planning of all phases of the development.

The £ 80million South Yorkshire Pension Fund was launched in 2019, following the success of the SCR Jessica Fund, to support regional investments in South Yorkshire and the region’s continued economic growth. Both Funds are managed by the CBRE investment advisory team, which is part of CBRE Capital Advisors.

BGF4 (Sheff) LLP is a wholly owned SPV of Barwood Regional Property Growth Fund IV LP, a five-year closed-end fund managed by Barwood Capital Ltd. Barwood Capital is moving the program forward alongside its development partner Tungsten Properties, a privately held development company based in Leicestershire.

George Graham, Director of the South Yorkshire Pensions Authority, said: ‘We are delighted to be able to fund the redevelopment of such an important site in Sheffield, bringing buildings that would otherwise be demolished back into service and creating new opportunities for use.

“This shows that we can meet the financial goals of the pension fund which must remain our primary focus while achieving wider benefits for our communities.”

Will Church, Senior Director of Investment Advisory at CBRE, added: “Recent research from CBRE shows that there is a growing demand for vacant logistics space in the UK, with a record vacancy rate of 1.53 % recorded in the third quarter of 2021, mainly driven by online retail. .

“Therefore, this regeneration project comes at a time when market conditions are very favorable and Sheffield has been the primary beneficiary due to its location and connectivity. In addition, the new development will contribute significantly to the socio-economic growth of the region, achieving the objectives of the Fund and regenerating a previously obsolete brownfield. “

Graham Wood, Chief Financial Officer of Barwood Capital, said: “We are very pleased to have secured development funding from the South Yorkshire Pension Fund for this exciting opportunity and are particularly pleased to have partnered with a lender who shares our commitment to regional investment and regeneration. “

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