Investec funds sustainable Horley logistics scheme with £15.7m

Investec Bank plc, a leading international bank and wealth manager, today announces that its Real Estate team has provided Kingsbridge, the privately owned UK real estate developer, with a £15.7 million senior facility to fund the acquisition and speculative development of a logistics scheme in Horley, Surrey.

The 36-month facility will finance the development of a cleared four acre freehold site with full planning consent. The scheme will comprise two Grade A mid-box industrial units of c. 57,000 sq ft and c. 31,000 sq ft.

The development will be designed in line with current local market expectations for multi-let logistics schemes of this scale and will be delivered to an institutional-grade specification. The scheme is targeting an EPC A+ rating and BREEAM Excellent certifications, reflecting its focus on energy efficiency, sustainability and low operating costs.

Key ESG features will include photovoltaic panels to support on-site renewable energy generation; EV charging infrastructure with provision for future expansion; an energy-efficient building design incorporating high-performance fabric and natural daylighting; and extensive landscaping and biodiversity enhancements.

The site is located on Cross Oak Lane in Horley, within the established Gatwick Diamond logistics market. It benefits from strong connectivity, being approximately four miles from the M23 at Junction 9, six miles from the M25 and three miles from Gatwick Airport. The surrounding area is an established logistics and industrial hub, with a range of distribution, logistics and airport-related occupiers.

The scheme is well positioned to benefit from proximity to key transport routes, access to established labour pools and continued demand for modern Grade A logistics space across the South East. Its location and specification are expected to support its appeal to occupiers seeking efficient, well-connected and sustainable premises.

Stephen Martin, Investec Real Estate, said:

“This transaction represents an opportunity to support the delivery of a high-quality, sustainable logistics scheme in an established and well-connected South East market. The scheme’s prime location within the Gatwick logistics market, together with its institutional-grade specification and strong sustainability credentials, positions it well to meet occupier requirements for modern, well-connected space.

“Our financing provides Kingsbridge with a flexible development facility to deliver the scheme on a speculative basis and enables us to support an experienced regional developer with a strong track record in the industrial and logistics sector across the South of England. We look forward to working closely with the team through the project.”

Paul Butler, CFO, Kingsbridge added:

“We are pleased to have secured this financing with Investec, which provides us with the flexibility to deliver a high-quality logistics scheme in a well-established and strategically important South East market. At a time when there is a clear flight to quality across the logistics sector, we believe the scheme is well positioned to benefit from continued demand for Grade A space.

“We look forward to progressing the development and delivering two high-quality units that provide occupiers with efficient, sustainable and well-connected logistics space.”