Leumi UK lends £37.1m to Kier Property for St Albans and Bognor Regis light industrial schemes
Posted: 30 Sep 2025 | Share
Real estate lender Leumi UK has provided a £37.1m loan to Kier Property for the acquisition and development of two multi-let light industrial assets in St Albans and Bognor Regis. The deal marks the second transaction between the two firms and represents Leumi UK’s first speculative development financing in the light industrial sector, where work commences prior to a tenant being secured.
In St Albans, Kier Property will deliver a 10-unit scheme totalling 55,513 sq ft under its Trade City brand, with unit sizes ranging from 4,350 - 6,550 sq ft. The site, now cleared to slab level, will be built to institutional-grade specifications, including EPC A and BREEAM Excellent ratings, with completion targeted for May 2026.
In Bognor Regis, the consented scheme will provide 11 industrial units under its Trade City and Logistics City brands ranging from 3,500 to 53,000 sq ft in size, with the overall development totalling 204,993 sq ft. Completion is targeted for November 2026 and the site is shovel-ready, with final contractor negotiations underway. The completed units will feature haunch heights of up to 10m, floor load capacities of 50kN/m² and will similarly be delivered to EPC A and BREEAM Excellent specifications.
The UK light industrial sector remains one of the strongest-performing segments in the commercial property industry, supported by a shortage of high-quality space, broad tenant demand and competitive rents. In St Albans, no comparable developments are expected to be delivered before 2026, with existing sites currently fully let, while in Bognor Regis there will be limited new stock before late 2026. There is already strong demand from major operators and logistics providers in both markets.
Leigh Thomas, Kier Property’s Group managing director 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 said: “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.”