09:09 1 March 2022
An A14 developer has received a bumper £13.8million loan to build another logistics unit as demand for industrial space along the vital road link soars.
Jaynic will be able to develop a new 160,000 square foot unit in Suffolk Park off the A14 in Bury St Edmunds – thanks to the cash injection from lender Fortwell Capital.
The A14 Corridor connects the UK’s largest container port at Felixstowe and the Midlands and London via the M11, M25 and M1, and Jaynic says growing demand has meant the development of the business park has been much more quicker than he had expected.
Since receiving the planning green light in 2017, 1.4m² of industrial space has been negotiated to date in Suffolk Park. Occupants include Hermes Parcelnet Ltd, Belgian logistics company Weerts Group, MH Star UK Ltd, Unipart Logistics, Treatt, Sealey, The East of England Ambulance Trust and Skechers. The Weerts warehouse – at 840,000 square feet – is the site’s largest unit.
Jaynic is the fifth developer of industrial/logistics space to which Fortwell has lent – and the single Suffolk Park unit is the largest to be financed by the alternative lender. The lender’s strategic priority is to lend in sectors and regions where there is strong commercial activity, accessibility and high and growing demand for quality assets.
Fortwell Capital Director Nikos Yerolemou-Ennsgraber said: “Above all, we are delighted to be working with Jaynic to deliver this unit to Suffolk Park. Jaynic has already demonstrated its ability to deliver high quality institutional units within the project, and we look forward to supporting the next phase of the park’s development.
“We expect demand for larger industrial units to remain strong as more companies seek to strengthen their distribution facilities in domestic and international markets.”
Jaynic Director Gary McCausland said: “We are delighted to be working with Fortwell Capital on this next phase of our development at Suffolk Park. Once these buildings are completed, there will be only 12.5 acres left to develop in the park.
“The speed with which the space was taken exceeded all our expectations. We expected the project to be built over 10 years and there is every chance that this will happen in just six years.
“This reflects the acute shortage of space, with demand continuing to grow and businesses taking up additional space to meet their future needs. It also demonstrates the growing reputation of Suffolk Park and the A14 corridor as a place of credible institutional investment.”