St. Modwen's £475M Debt Deal Means Lots More Sheds
St. Modwen has secured a new £475M unsecured revolving credit facility as it ramps up development of a 7.5M SF logistics pipeline.
The refinancing deal, with an initial maturity of five years that can be extended to seven years, replaces an £88M secured debt facility.
The refinancing follows a six-month strategic and portfolio review completed in June. The rethink included a renewed focus on the residential sector and the industrial and logistics sector where rent growth has remained robust.
St. Modwen has identified 7.5M SF of industrial and logistics projects deliverable over the next few years.
“In the medium term, our commercial development pipeline is concentrated on the industrial and logistics sector, which accounts for approximately 70% of opportunity by value," the company said.
Recent deals include Hellmann Worldwide Logistics becoming the first tenant at the 280-acre Burton Gateway. The company has taken a 10-year lease at the 88K SF speculative unit.
St. Modwen has recently submitted a detailed planning application for the first phase of development at the 35-acre Tamworth Logistics Park. The 90K SF first phase is part of a 677K SF scheme.