Despite huge challenges in the market due to the COVID-19 pandemic, FDC’s Property Team has completed 3 new property investments in the last 3 months, providing access to a range of funding from the West Midlands Combined Authority (WMCA).
Investing in both commercial and residential property developments in the West Midlands region, including those of a speculative nature, c. £10million of capital has been awarded to developers, with three deals completing in the space of 90 days.
£5.4million – Pioneer Park, Telford
This new 80,000sqft industrial scheme brings three high-quality, energy-efficient buildings to the Halesfield Industrial Estate in Telford. The speculative development is located in a prime position close to local motorway links, within a well-established industrial area.
Redsun Projects secured a £5.4million investment from the WMCA’s Commercial Investment Fund (CIF), to bring forward the 5acre site. It is anticipated the site will become home to more than 200 jobs once fully let.
£3.6million – Cakemore Road, Rowley Regis
The 2.7acre site has been derelict for years, but a £3.6million investment made in September 2020 will support a regeneration scheme to bring forward much needed commercial accommodation for smaller firms in the Black Country. Lead by Solihull based Warmflame Developments Ltd, when fully let the 54,000sqft industrial and distribution units will provide space for 100 jobs.
Warmflame’s WD.BOXHUB schemes provide a high spec solution to SMEs looking to buy or lease good quality units of a small or “micro” size. Access to this type of modern development is seen as a crucial step towards supporting the growth of smaller firms in the region and is becoming increasingly important as firms adjust to the impact of the pandemic.
£900,000 – Hawks Green Depot, Cannock
Work is progressing to transform brownfield land in Cannock into a housing development providing 44 homes. Cannock based developer Jessup Brothers has partnered with Cannock Chase Council to redevelop part of the Council’s depot into a mixed tenure housing estate. Due for completion in March 2022, the site will offer 22 homes on the open market and 22 homes for rent.
The WMCA provided a £900,000 grant in November 2020 from the Brownfield Land and Property Development fund (BLPDF) in order to remediate the land. The investment kickstarted the site, with a further £12.9million invested from Cannock Chase Council’s Housing Investment Fund. The development is set to breathe new life into an underutilised piece of Council land.
FDC manages the RIF, CIF and BLPDF on behalf of the WMCA, and the funds remain open to developers seeking capital for eligible developments and regeneration opportunities. For more information on accessing WMCA property funding click here.
The team are working on a number of new transactions that will be announced early next year. In the meantime, the FDC Property Finance team wish you all a Happy Christmas and a Prosperous 2021.