SCR JESSICA Fund and the South Yorkshire Pension Fund have jointly provided two loans totaling £12.6m to Harworth Group, to fund the development of two industrial sites totaling 192,000 sq ft in South Yorkshire.
A £6.8m loan will fund the development of the next phase of Gateway 36, 110,000 sq ft of industrial space across three units, located just off Junction 36 of the M1. This is Phase 2A of the wider masterplan to redevelop the former Rockingham Colliery, with SCR having funded Phase 1 in 2015.
A £5.8m loan will facilitate the development of 82,500 sq ft of industrial space across three units at the Advanced Manufacturing Park (AMP) in Rotherham, also a former colliery site. SCR has previously funded units at the AMP for Harworth.
The SCR JESSICA Fund was established in 2013 to support regional investment and economic growth in South Yorkshire. The ongoing success of the Fund led to the £80m South Yorkshire Pension Fund being launched in 2019. Both Funds are managed by CBRE’s Investment Advisory team, part of CBRE Capital Advisors.
In December, Bolsover Land successfully repaid a £4.75m loan, which enabled the regeneration of the former Bolsover Coalite Works to be transformed into employment space. The mezzanine loan from SCR JESSICA ranked behind a £10.5m senior facility from the South Yorkshire Pension Fund. Q4 2021 also saw the £3.20m repayment of Blue Deer’s 47,000 sq ft mixed-use Glass Yard scheme in Chesterfield.
Will Church, Senior Director, Investment Advisory, CBRE commented: “These projects are a continuation of the strong relationship the Funds have built with Harworth over the last few years, bringing forward vital redevelopment projects which are a catalyst for wider socio-economic growth in the region. It is brilliant to see the Funds collaborating on these regeneration projects, allowing them to broaden their investment scope and increase their commitments.”
Ben Morley, Director, SCR JESSICA Fund, commented: “As the Fund enters its tenth year of investment it continues to support high quality developments across the region. The two new schemes will see the JESSICA Fund having invested £70 million in the regional economy leading to 308,000 sqm of development. With recent repayments the Fund is well placed to look at new investment opportunities and would particularly welcome schemes looking to develop in our urban centres.”
