Cain International (“Cain”), the privately held investment firm, has agreed an extended development finance facility of £19.25 million with Jaynic Property Group.
Cain originally lent £13.8 million in February 2022 for the development of SP160, a 160,000 sq ft warehouse at Jaynic’s Suffolk Park logistics scheme to the east of Bury St Edmunds. It has now agreed to extend the loan by a further £5.45 million, allowing the development of an additional 47,000 sq ft unit, SP47, at the same location.
The new developments form the third phase of Suffolk Park, a key commercial location in the region with exceptional transport connections via the A14 corridor, linking it to Felixstowe, the UK’s largest container port, and to the Midlands and London via the M11, M25 and M1. Suffolk Park has been a resounding success since planning consent was obtained in 2017, with occupiers including Hermes Parcelnet, MH Star UK, Unipart Logistics, Treatt, Sealy, The East of England Ambulance Trust and Skechers.
The activity closely follows Cain’s £13.85 million senior development loan to wine merchant Lay & Wheeler for the forward funding of a new wine storage warehouse and head office near Ipswich, Suffolk.
The firm’s Fortwell debt strategy, which targets development finance for projects in the sub-£50 million bracket, has lent over £66million in the industrial/logistics sector in the last nine months alone.
Cain has additional exposure in the logistics market, having recently entered the space through its equity division through the £550 million acquisition of a Grade A logistics portfolio comprising 3.25 million sq. ft across seven sites throughout the UK.
Nikos Yerolemou-Ennsgraber, director at Cain, said: “Suffolk Park is a fantastic logistics scheme, and as such it is pleasing to put together an extension to the existing loan facility that will enable Jaynic to develop the warehouse space that East Anglia has a growing requirement for. Logistics has been an area of growing importance to Cain, and to hit £100 million of lending to the sector under the Fortwell debt strategy highlights our confidence in the market’s fundamentals.”
Gary McCausland, director at Jaynic, added: “We are delighted to be able to do our second financing with Cain at Suffolk Park and look forward to the continued success of the scheme.”
Starting on site in 2017, Jaynic’s Suffolk Park scheme in Bury St Edmunds has developed over 1.4m sq ft taking space at Suffolk Park. Existing occupiers include Weerts Group (Skechers/Bleckmann), MH Star UK Ltd, Unipart Logistics, Treatt, Sealey and The East of England Ambulance Trust.
Suffolk Park offers prospective occupiers bespoke buildings on a design & build basis alongside a rolling programme of speculative development. Currently it has three warehouses under construction-SP76 a prelet of 76,000 sq ft to Hermes/ Evri and SP47 and SP160 that offer a 47,000 sq ft and a 160,000 sq ft warehouse that will be available for occupation later this year.
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