Karis Capital close £10M structured finance deal for two Industrial Sites in London

London’s industrial real estate sector continues to attract strong investor demand. In Q3 2024 alone, investor interest in industrial assets surged by 34%, outpacing other sectors such as offices, retail, and leisure. Yet, securing funding for large-scale projects has become increasingly complex. Rising borrowing costs and a competitive lending landscape require innovative financing solutions and strong lender relationships (Colliers, Avison Young).

At Karis Capital, we specialise in navigating these complexities. Our recent work facilitating a €12 million loan for two major industrial sites in London illustrates how complex structuring and alternative collateral can unlock capital in competitive markets. In this case, the loan was underpinned by a €60 million classical villa in southern Spain, enabling the client to restructure an existing industrial asset with planning consent for a 260,000 sq. ft. facility and acquire a nearby site to expand their portfolio. This transaction highlights a growing trend: prime assets outside the industrial sector being leveraged to access finance, particularly during periods when traditional lenders are cautious.

A key element of success was the Topco restructure, which allowed the client to raise equity efficiently while preserving flexibility. By securing an 18-month repositioning period, the client has the time to enhance both sites before reviewing their financial structure, a strategic advantage in today’s market.

Nicholas Christofi, CEO and co-founder of Karis Capital, reflects: “This was a complicated and challenging deal, but our team rose to the occasion to deliver the best outcome for our client. It demonstrates how creative structuring and leveraging prime assets can overcome funding challenges, even in competitive sectors like London industrial real estate.”

How can we help?

Our expert knowledge and service offerings have seen our real estate finance team work alongside leading prime property developers and across high-profile projects for a number of years. Karis’s unmatched hands-on experience helps guide their clients to the best rates and lenders in the markets while also pursuing maximum returns, leveraging extensive relationships with finance leaders, valuers and lawyers to ensure smooth transactions from start to finish.