Crosstree Real Estate Partners and Bloom Secure £29m Loan

Crosstree Real Estate Partners and Bloom have secured a £29 million loan to fund the repositioning of the Fairview Business Centre, a multi-let industrial estate in Hayes, west London. This marks the first acquisition under their newly formed joint venture, which is focused on transforming industrial and logistics properties, with an emphasis on last-mile logistics. The joint venture has a total capital value of approximately £200 million (€238 million) and is set to invest in underinvested industrial assets in supply-constrained submarkets, initially targeting London and the southeast, with potential expansion into regional cities.

The Fairview Business Centre was selected as the first acquisition due to its prime location in a large regeneration area. Purchased below replacement cost, the property benefits from a strong and diverse tenant base. It offers significant opportunities for refurbishment and sustainable upgrades, enhancing the asset’s value and market appeal. The £29 million loan will enable Crosstree and Bloom to reposition the estate into a modern, fit-for-purpose industrial and logistics hub, catering to a wide range of customers and responding to increasing demand for high-quality, sustainable industrial spaces.

Crosstree and Bloom are optimistic about the current state of the UK’s last-mile logistics sector. They believe industrial property values have reached their lowest point and are now trending upwards, buoyed by improved investor sentiment as inflation pressures ease and the cost of capital stabilizes. This partnership aims to capitalize on the favorable market conditions by repositioning underutilized industrial assets, delivering upgraded properties that meet the needs of a competitive market. The joint venture between Crosstree and Bloom represents a strategic move to unlock value and enhance sustainability in key industrial properties across the UK.