The Lancashire Urban Development Fund (UDF) is managed by respected, experienced investors who have successfully delivered projects through similar funds in other regions across the country.
Lancashire UDF fund managers, Robert Wood and Andrew Sykes, have been advising developers and owner-occupiers collectively for over five years as part of the igloo Investment Management team. As well as heading up the Lancashire UDF, they also manage The Chrysalis Fund, a successful Liverpool-based investment fund launched in 2012, which follows a similar model and criteria to the Lancashire UDF.
Mersey Reach is a highly successful industrial project which benefitted from a £9m loan from Liverpool City Region Combined Authority and The Chrysalis Fund, a £34 million revolving fund managed under the LCR Combined Authority’s Strategic Investment Fund framework.
The Sefton-based industrial project has been brought forward by the UK’s largest multi-unit industrial property developer and asset manager, Chancerygate, built on the site of the former Peerless & Lunt edible oils and soap manufacturing works, which dated back to the 1920s.
Originally 17 acres, the land was purchased in 2007 before the financial crash of 2008 caused the project to stall and leave the area vacant for a long period of time. A great deal of remediation was required to ensure the site was fit for purpose, which came at a cost and meant Chancerygate struggled to get the project back up and running. Working with Sefton Council, the developer looked at funding options, including the Chrysalis Fund, which offered them more flexibility and greater risk appetite than other lenders were prepared to offer.
The first phase of the speculative, multi-let industrial development completed in 2021 now comprises c.114,000 sq ft of workspace on a 13.6-acre site, with units ranging from 12,000 to 42,000 sq ft all of which have an EPC rating of B and BREEAM “Very Good”.
Since its completion, Mersey Reach has gone on to win numerous awards. It has made a positive contribution to employment generation, bolstering the local economy in the Sefton area, where it is estimated it helped create up to 276 jobs in Phase 1 alone, as well as improving the area’s general amenities including road improvements and the building of a new bus stop.
Mike Walker, development director at Chancerygate said: “The (igloo Investment Management) team approaches things from a different perspective than a normal institutional funder, it’s not just the financial outcomes they are after, it’s more about the regeneration aspects of a project.”
Robert Wood said “Projects like Mersey Reach are a huge success story for urban development funds like The Chrysalis Fund. When entering into a deal with a developer, we always weigh up all of the options to determine what the best outcome will be, not only for the scheme itself and the developer but also for the City Region economy too.
“We hope to replicate projects like Mersey Reach in the Lancashire area now through the Lancashire Urban Development Fund. We are continuing to urge all developers with viable projects to come forward and share their business plans with us, so we can provide support and finance to get their deals over the line.”
The Chrysalis Fund is supported by the 2007-2013 European Regional Development Fund for the North West under the Joint European Support for Sustainable Investment in City Areas (“JESSICA”) programme.