Puma Property Finance has provided a £21m loan to Kier Property to fund a new industrial logistics unit in Milton Keynes.
The project, ‘Logistics City MK’, will deliver a 125,647 square foot grade A facility, with 112,860 square feet of warehouse space and 12,787 square feet of office space.
The site sits within the logistics ‘Golden Triangle’ near the M1 and Milton Keynes Central Station, and previously housed a 66,493 square foot warehouse and office block.
The scheme is set to include a green roof, landscaped outdoor spaces, two heavy goods vehicle (HGV) and vehicle access points, 15 electric vehicle charging bays, rooftop solar panels, air source heat pumps, energy efficient lighting and 42 cycle spaces.
The development aims for net zero carbon standards, with targets for Building Research Establishment Environmental Assessment Method (BREEAM) Excellent and Energy Performance Certificate (EPC) A plus ratings.
Kier Property will also pursue EDGE Advanced certification under Puma’s impact lending framework, targeting 40% energy savings and 20% savings in water and embodied energy.
Kier Property will get a fee reduction on the loan if it meets the sustainability criteria.
Completion is expected in early 2026.
Leigh Thomas, group managing director at Kier Property, said: “We are very pleased to be partnering with Puma Property Finance on this exciting logistics development in Milton Keynes.
“Logistics City MK represents the next generation of sustainable industrial space, and this partnership demonstrates our shared commitment to delivering high-quality, environmentally responsible developments.
“We look forward to seeing the scheme come to life and building a strong relationship with Puma as we continue to expand our Logistics City portfolio.”
Kent Lawrence, senior manager at Puma Property Finance, said: “We are delighted to be partnering with Kier Property, an institutional client with a strong track record having successfully delivered over 50 industrial and logistics developments totalling more than 6.7 million sq. ft across their Trade City and Logistics City brands.
“Logistics City MK is a strong asset located in a prime distribution area and will feature top-tier specifications and the highest sustainability criteria.
Lawrence added: “We continue to target likeminded stakeholders and provide a sustainability linked facility that rewards ambitious developers.”
“More broadly, the industrial sector remains attractive to us as a funder due to the rebasing of values in recent years and provides an opportunity for us to continue diversifying our sector exposure.
“We look forward to seeing the scheme develop and growing our relationship with Kier.”
