A £3.7m loan has been repaid ahead of schedule by a commercial property company after securing several high-profile occupiers to a multimillion-pound speculative development in Wednesfield.
Goold Estates secured the loan via Finance Birmingham and the West Midlands Combined Authority Collective Investment Fund in July 2017 to start the construction of the 75,000 sq ft Steelpark Trading Estate.
The loan was to be paid back over the course of three-years, but after three of the site’s six industrial/warehouse units were snapped up, funding has been repaid less than 12 months after the first drawdown.
Oldbury-based Goold Estates is a commercial property, investment and development company specialising in industrial and office property across the West Midlands.
Managing director Dominic Goold said: "Working with Finance Birmingham has been very practical and straightforward and reduced the level of risk involved in the project.
"It has enabled us to deliver a high quality speculative development in a much quicker timeframe than would otherwise have been possible.
"The Steelpark site, which is adjacent to the Tata Steel Automotive Service Centre, had been vacant and available for development for many years.
"We acquired it in September 2016 and acted quickly to secure planning consent and get the development underway.
"All of the six units were built speculatively, for sale or lease, because we were confident of a strong demand in the market. Three units are now occupied, one is under offer and only two remain available.
"Funding was for three years so both we and Finance Birmingham are delighted to have turned this around so quickly.
"We are actively seeking other opportunities to invest within the region."
The Steelpark development, which was awarded planning consent from City of Wolverhampton Council, reached practical completion earlier this year.
Last year it was announced that Kinetrol, which manufactures rotary pneumatic actuators, had acquired a 7,754 sq ft unit at Steelpark for an undisclosed sum.
Earlier this year a UK stockholder of engineering metals and plastics signed a 10-year lease on a 11,470 sq ft unit at the trading estate.
Nick Oakley, senior investment director at Finance Birmingham, said: "It’s great to see work on Steelpark complete.
"This is an excellent, well located site and we are delighted to have supported Goold Estates in bringing forward a development which has delivered much needed quality industrial accommodation in the area. We look forward to supporting Goold Estates on their next project."