£34m funding secured to bring forward Sheffield logistics scheme

Funding of £34m has been agreed to support the development of a large logistics facility in Sheffield with the potential to create about 450 jobs.Trammell Crow Company (TCC), a global developer and investor in commercial property, has secured the development loan against its site in Sheffield from the South Yorkshire Pensions Authority (SYPA).TCC is set to develop a 367,151 sq ft grade A logistics facility on a 20-acre site on Shepcote Lane, located about half a mile from Junction 34 of the M1 motorway in an established industrial and logistics area.The site was formerly occupied by a facility let to fencing manufacturer Betafence, and before that to Tinsley Wire.The new storage and distribution unit is expected to create 450 jobs, with additional employment opportunities during the development and construction of the scheme.Construction is expected to start this month, with completion due in the summer of 2023.Richard Fell, head of european logistics capital markets at Trammell Crow Company, said: “Securing this loan against our Sheffield site is a strong reflection of the quality of the assets that we are developing, and our site-finding capabilities in supply-constrained markets.”Benefitting from excellent locations in prime logistics markets, built to the highest quality and sustainability standards that ensures they are best equipped to tackle the challenges and potential regulations of the future, they are strong investment opportunities.”We are continuing to see investment appetite from equity and debt investors across our European developments and look forward to continuing to engage with everyone from local investors such as SYPA as well as European and global institutions.”Councillor John Mounsey, chair of the South Yorkshire Pensions Authority, added: “It’s a pleasure to have invested our members’ capital in a scheme like Trammell Crow Company’s Sheffield development, providing quality jobs for our community and being developed to high environmental standards.”It is rewarding to see the Pensions Authority use its power as an investor to help with a number of developments across South Yorkshire while making the returns we need to pay our members pensions.”SYPA is the public body responsible for the running of the £10.8bn South Yorkshire Pension Fund, which is a part of the Local Government Pension Scheme. The Fund has about 170,000 members who work for more than 600 different organisations, including local councils and academy schools.The Pensions Authority’s £80m local development loans portfolio forms part of its impact allocation, which is intended to achieve a wider range of impacts such as job creation as well as the return targets that the pension fund needs to make to ensure it can meet its obligations to pay pensions.Having launched in Europe in 2021, US-based developer TCC now has three sites in the UK – in Sheffield, Milton Keynes and most recently in Heywood near Manchester – as well as in Germany, Spain and the Czech Republic.CBRE and CPP are leasing agents for the scheme.