Logistics developer Panattoni has secured a £625m development loan facility, which will be used to fuel its ambitious plans for further expansion in the UK’s speculative development market.

News of the facility loan closely follows Panattoni UK’s acquisition of a prime 65-acre site on the Nottinghamshire/Yorkshire border with planning consent for over 1.2 million sq ft.

The developer claims it will be the largest-ever speculative logistics unit in the North of England, a building of 770,000 sqft,

Panattoni has acquired several new sites this year, adding a further 2 million square feet of industrial space, which is in addition to its current spec-build program, where it is committed to the build out of 3 million sq ft.

The new loan facility, which was arranged by JP Morgan with a syndicate of lenders and is extendable for up to five years, will be used by the developer to fund a new wave of speculative warehousing, in areas of undersupply.

Matthew Byrom, Panattoni managing director, said: “This new £625m facility allows us to continue our ambitious growth plans for the UK and helps us support our partners in building best-in-class assets.

“We are keen to grow our pipeline of buy and build development and are seeing an unprecedented number of compelling opportunities in which we’d like to invest”.

Oliver Choppin, Panattoni finance director, commented: “Our decision to pursue a flexible revolving credit facility provides us the ability to access capital quickly and allows us the agility to close on new investments without complication.

“We are appreciative of the support provided by the lending groups involved, particularly at this challenging time.”

Panattoni UK’s recent acquisition of its latest site, named Panattoni Central, which is on junction 34 of the A1(M), is a two phase development.

It has been acquired from Mulberry Developments in an off-market deal.

Panattoni will commence construction in the autumn. Winvic Construction has been appointed as the contractor.

Practical completion is expected in September 2025.

Panattoni is targeting net zero carbon development, an EPC rating of ‘A’ and BREEAM ‘Outstanding’ sustainability rating – its second development in the UK with an ‘Outstanding’ rating this year.

The cross-docked unit will benefit from 18m eaves, 55m service yards, EV van and car charging and 15% rooflights.

The remaining 27-acre plot, which already benefits from reserved matters planning consent for a 461,000 sq ft building will initially be marketed on a build-to-suit basis.

Panattoni 770 Central A1(M) is close to local and national distribution routes, including the A1(M), M1 and M62 as well as the east coast ports. Major distribution occupiers in the immediate vicinity include Culina, B&Q, Butternut Box and Daher Aerospace.

Panattoni UK said it remains focused on the big box market, where there is a scarcity of supply and strong demand for units of 400,000 sq ft and above.

Dan Burn, Panattoni head of development North West and Yorkshire, said: “This is a fantastic opportunity for us to acquire a prime logistics site in an established location by the A1(M). The development provides us with the opportunity to capitalise on the dearth of supply of XXL units across the country.”

 

 

 

 

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