Pigeon, the Suffolk-based property developer and land promoter, has secured a multi-million-pound green loan from Virgin Money to support the delivery of a new high-spec industrial and office development in Hertfordshire.
The scheme, known as MAX50, comprises 86,316 sq ft of industrial warehouse space with integrated mezzanine and office accommodation. It will be located at Theobald’s Business Park in Cheshunt and is set to be leased to Stephen James (Automotive) Ltd for use as a service centre, paint and body repair facility, parts distribution hub and head office to serve its BMW and Mini dealerships across Greater London and the South East.
The loan is the first green facility to be issued by Virgin Money’s Hotel & Real Estate Finance team and marks a significant milestone in the bank’s sustainable lending strategy. The funding will help support Pigeon’s own ESG goals, with the new building targeting an EPC A rating and BREEAM Excellent certification.
Hugh French, development director at Pigeon, said the MAX50 project was designed to combine high environmental standards with social value creation. “We are delighted that Virgin Money is supporting us with finance to develop this new facility for Stephen James Group. We have formed a strong relationship with their Real Estate team and are proud to have received the team’s first green loan,” he said.
“In addition to a high standard of sustainability, Cheshunt MAX50 will generate over £4m in social impact for both the local community and wider region.”
The project broke ground in March and is scheduled for completion in early 2026. The site is expected to help meet the growing demand for premium, energy-efficient industrial and commercial space within the M25 corridor.
Jonathan Sant, senior director real estate finance at Virgin Money, said: “Supporting Pigeon with our first green loan from the Hotel & Real Estate Finance team is a significant milestone for Virgin Money. The MAX50 scheme perfectly aligns with both our commitment to providing sustainable finance and Pigeon’s ESG strategy. We look forward to seeing this state-of-the-art facility contribute to the local economy and set new benchmarks in environmental standards.”
According to government data, non-residential buildings account for approximately 5% of the UK’s total carbon emissions. Virgin Money said the loan contributes to its wider ambition, through its Mobiliser Fund, to ensure 20% of its business lending balances are committed to financing the transition to the next economy by 2027.
