£18.8 million debt and equity package sourced for a development

Finance provided to Tavis House Properties through Charles Irvine.

Tavis House Properties recently acquired a four-acre site in Hoddesdon Business Park, in Hertfordshire, eight miles north of Junction 25 of the M25. The development will involve the demolition of existing buildings before the construction of approximately 80,000 sq ft of new logistics and industrial warehousing.

Charles Irvine provided equity advisory services to secure GBP5.7 million investment from a private client investment manager as well as debt advisory services to secure a GBP13.1 million acquisition and development finance loan from a specialist alternative lender.

Tavis House Properties originated the project and will act as development manager until its completion, planned for March 2023. The planned end value is GBP25 million. Tavis House Properties and Charles Irvine intend to undertake to establish a portfolio with an end value of approximately GBP200 million to GBP250 million over the next two to three years.

Martin Smith, Founder and Managing Director of Tavis House Properties, says: “We have been working with Charles Irvine for several years and this is the third project we have funded together. This transaction has taken over nine months to negotiate and has benefited greatly from Charles Irvine’s understanding of both the real estate capital markets and of the acquisition and development processes required to analyse and manage project of this type. We look forward to undertaking further acquisitions over the coming months and years in partnership with Charles Irvine and with the same capital partners and new ones.”

David Cunnington, Managing Director of Charles Irvine, says: “This was a complex process involving two funding partners who had their own specific financing requirements. It was a pleasure working with both parties to secure what is a strategic site in a prominent location. Tavis House has a proven track record for creating significant value out of its acquisitions and we look forward to working in partnership with them to develop a large-scale portfolio of logistics and industrial real estate assets.”