Leumi UK has delivered a £37.1m loan to Kier Property to fund the acquisition and development of two multi-let light industrial projects in St Albans and Bognor Regis.
The deal, which represents Leumi UK’s first speculative development financing in the sector, marks the second transaction between the lender and Kier Property.
Unlike pre-let schemes, speculative development involves construction before securing tenants, underlining Leumi UK’s growing appetite in the commercial real estate lending market.
PROJECTS IN ST ALBANS AND BOGNOR REGIS
In St Albans, Kier will deliver a 10-unit Trade City scheme totalling 55,513 sq ft, with units ranging from 4,350 to 6,550 sq ft. The site has been cleared to slab level, with completion expected in May 2026. The development will be built to institutional standards, achieving EPC A and BREEAM Excellent ratings.
In Bognor Regis, the company plans an 11-unit scheme under its Trade City and Logistics City brands, ranging from 3,500 to 53,000 sq ft. The 204,993 sq ft project, currently shovel-ready, is expected to complete in November 2026.
It will feature floor load capacities of 50kN/m² and haunch heights of up to 10m, and will also be delivered to EPC A and BREEAM Excellent specifications.
MARKET CONTEXT
The UK light industrial market remains one of the strongest-performing sectors of commercial property, supported by a shortage of high-quality space, strong occupier demand and competitive rents. In St Albans, no comparable new space is expected before 2026, with existing stock fully let.
In Bognor Regis, limited new supply is anticipated until late 2026, with demand already evident from major operators and logistics providers.
Leigh Thomas, group managing director at Kier Property, said: “Leumi UK’s responsiveness and flexible approach were integral to getting this deal over the line. The team’s collaborative mindset and sector-specific expertise ensured we could move quickly and decisively.
“We’re excited to deliver two best-in-class developments that will meet the urgent demand for high-quality industrial assets in St Albans and Bognor Regis.”
Chris Stallard, relationship director at Leumi UK, added: “Partnering with Kier Property on our first speculative development financing in the light industrial sector is an important milestone for Leumi UK.
“This transaction reflects our expanding appetite and growing capability within the commercial real estate lending space and Kier Property’s proven track record of delivery.
“Having previously partnered with Kier Property, it also highlights our relationship-driven approach and commitment to delivering bespoke, tailored financing solutions at speed.”
