Huge Merseyside warehouse development gets £2.4m funding
18 November 2014
The Chrysalis Fund has invested £2.4m in a new warehouse development on Knowsley Industrial Park.
Work will start this month on the £6m scheme to build 110,000 sq ft of new, speculative grade A warehouse space on land at Hornhouse Lane.
The £39m Chrysalis Fund has committed the £2.4m to developer Fintan Earley. In addition, a £1m European Regional Development Fund (ERDF) grant and a £1.5m Growing Places Fund loan have also been approved to create a full financing package alongside sponsor equity.
John Tatham, fund manager for the Chrysalis Fund, said: "The fact that the development is speculative shows an increased confidence in the industrial sector and it is anticipated that the scheme will attract occupiers from the automotive, distribution or retail sectors.
"As Liverpool City Region gears up to be the freight and logistics hub for the North with the Liverpool2 project, SUPERPORT will also drive demand for warehouse and logistics space such as this. This investment illustrates our continued commitment and passion to deliver economic growth and job creation in the Merseyside area.”
Developer Mr Earley said: "There is a shortage of new warehouses in the Liverpool area. We would like to thank the European Regional Development Fund, the Chrysalis Fund and the Growing Places Fund for their financial support and Knowsley Council for their help throughout. Without it, this speculative development would not be possible."
Cllr Dave Lonergan, Knowsley Council’s Cabinet Member for Regeneration, Economy & Skills said: "This latest announcement is welcome news for Knowsley and for the wider City Region. We are one of very few areas across the UK that is witnessing a boom in speculative development which shows a real confidence in the market here and is a great boost to the local economy.”
Cllr Phil Davies, chair of the Liverpool City Region combined authority said: "This latest announcement at Hornhouse Lane shows how well we work together to extend financing options for urban projects in the North West.
"Deals like this help to prolong the impacts of ERDF funding by investing in worthy projects which offer huge benefits to the Liverpool City Region to enhance economic growth and job creation through the delivery of new commercial floorspace.”
Robert Hough, Chair, Liverpool City Region Local Enterprise Partnership (LEP), said: "This announcement from the Chrysalis Fund is a welcome investment for the City Region. The continued development of strategic areas such as Knowsley Industrial Park are an important priority for the LEP, and as such, is an important element of our £232million Growth Deal.”
The Chrysalis Fund was launched in March 2012 to support commercial regeneration activities in the Liverpool City Region. The fund focuses on schemes that demonstrate economic growth and job creation.
The initiative is backed by the European Investment Bank, the Homes and Communities Agency (HCA) and European Regional Development Fund under the JESSICA (Joint European Support for Sustainable Investment in City Areas) programme.
The fund is managed by the Igloo Consortium, which is made up of Igloo Regeneration Limited, GVA and RBC Capital Markets and operates in partnership with the Liverpool City Region LEP and the local authorities.