Investec expands logistics exposure with first industrial outdoor storage loan

Investec Bank plc, a leading international financial services provider, has provided Kennedy Wilson with an £11.3 million loan to fund the acquisition and repositioning of Horatius Way, a prime Industrial Open Storage (“IOS”) site in Croydon, South London.

The 4.6-acre freehold site, formerly occupied by BT, comprises approximately 186,500 sq. ft of open storage space and is located within the established Purley Way / Beddington industrial corridor, one of South London’s most important logistics and industrial hubs. The location benefits from strong connectivity to Central London, the M25 and the wider motorway network.

The facility will support Kennedy Wilson’s business plan to undertake targeted capital works to upgrade the site, including improvements to surfacing, security, utilities and subdivision.

The repositioned scheme will provide flexible, secure accommodation suitable for a broad range of occupiers, including logistics, fleet, construction and urban distribution operators. The site benefits from existing planning consent for industrial and storage uses, with further planning optionality supporting its long-term strategic value.

Industrial open storage has emerged as a core sub-sector within the wider logistics market, underpinned by structural drivers such as e-commerce growth, last-mile delivery requirements and the electrification of commercial vehicle fleets. Demand for well-located open storage sites in London remains strong, while supply is structurally constrained, particularly within established South London corridors.

Mike Russell, Investec Real Estate, said: “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. 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.”

Joe Taylder, Kennedy Wilson, said: “Investec’s support has been instrumental in enabling the acquisition and repositioning of Horatius Way. 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.”

This transaction builds on Investec’s established track record of supporting clients investing in urban logistics and industrial assets across the UK. Recent deals in the sector include financings for large-scale logistics and distribution assets, reinforcing Investec’s continued commitment to markets benefiting from long-term structural demand drivers and experienced sponsorship.