Debt funding for the redevelopment of a former racing circuit in the Midlands

In September 2020, Charles Irvine advised a private equity backed property business on a significant redevelopment strategy for an automotive logistics project located in the Midlands transport hotspot of Corby, Northamptonshire.

The project sees the repositioning of the Rockingham race track, a 340-acre race track which was described as Europe’s fastest racing circuit. It now has planning consent for redevelopment into the UK’s premier automotive logistics hub, with additional serviced offices.

Our client’s strategy is to build upon Rockingham’s automotive heritage and reputation for innovation by providing occupiers with new benchmarks for processes, technology, talent, and services in the automotive sector

A new £33m debt facility was used to repay c. £22m of existing loans and to fund further capital expenditure at the site. The new loans were provided by a UK bank with middle eastern origins which focuses on UK property loans and other asset backed lending.

During the process, we worked closely with the property company principals as well with the private equity backer to assess all options available in the lending market and to work with the sponsors to negotiate terms with a final panel of three lenders and lastly to finalise the loan documentation with the selected lender. By doing so, the sponsors felt confident that they had achieved the most competitive terms in the market and had been able to negotiate a lending structure that most accurately fitted with the business plan for the development of the site and existing properties.