South Yorkshire Pension Fund creates new jobs with £11.75m regeneration project
The South Yorkshire Pension Fund has provided an £11.75m loan to BGF4 LLP to fund the redevelopment of an 11-acre site on Greenland Road in Sheffield.
The loan will partly fund the site acquisition, as well as contributing to the regeneration of an existing 130,750 sq ft former B&Q warehouse and developing 58,000 sq ft of new industrial units to create a total of 191,150 sq ft of industrial and logistics space.
The £80m South Yorkshire Pension Fund was launched in 2019, following the success of the SCR Jessica Fund, to support regional investment in South Yorkshire and the ongoing economic growth of the region. Both Funds are managed by CBRE’s Investment Advisory team, part of CBRE Capital Advisors.
BGF4 LLP is a wholly owned SPV of Barwood Regional Property Growth Fund IV LP, a 5-year closed-ended fund managed by Barwood Capital Ltd. Barwood Capital is delivering the scheme alongside development partner Tungsten Properties, a privately-owned development company based in Leicestershire.
George Graham, director of the South Yorkshire Pensions Authority said: “We are pleased to be able to finance the redevelopment of such a prominent site in Sheffield bringing buildings which would otherwise be demolished back into use and creating new employment opportunities.”
Will Church, senior director, Investment Advisory, CBRE commented: “CBRE’s recent research shows that there is rising demand for vacant logistics space in the UK, with a record low vacancy rate of 1.53% recorded in Q3 2021, driven primarily by online retail.
“Consequently, this regeneration project is being delivered at a time when the market conditions are very favorable and Sheffield has been a primary beneficiary as a result of its location and connectivity.”
Graham Wood, Barwood Capital’s CFO said: “We are very pleased to have secured development finance from the South Yorkshire Pension Fund for this exciting opportunity and are particularly pleased to have partnered with a lender that shares our commitment to regional investment and regeneration.”
Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular Yorkshire & The Humber morning email for free.