Puma Property Finance has provided a £21 million loan to Kier Property (“Kier”) to fund the development of a new industrial logistics unit in Milton Keynes.

Kier, part of the FTSE 250-listed Kier Group plc, specialises in urban regeneration by investing in and developing mixed-use commercial and residential sites cross the UK. The funding will be used to develop a state of the art 125,647 sq. ft. Grade A industrial facility known as ‘Logistics City MK’. The scheme will deliver 112,860 sq. ft. of warehouse space and 12,787 sq. ft. of modern office space and will include an environmentally friendly green roof and landscaped outdoor amenity spaces.

The development is located within the logistics ‘Golden Triangle’, near the M1 motorway and Milton Keynes Central Station. The six-acre site previously housed a 66,493 sq. ft. warehouse building and adjacent office block with car park.

The scheme’s sustainability credentials will target Net Zero Carbon Standards; BREAAM Excellent and EPC A+ ratings. The development will also pursue EDGE Advanced certification through Puma’s Impact Lending Framework (ILF) targeting 40%+ in energy savings with 20%+ savings in water and embodied energy. Subject to final completion and the sustainability criteria being achieved, Kier will be entitled to a fee reduction on the loan amount under the terms of the ILF.

It will include two separate HGV and vehicle access points, car park spaces with 15 electric vehicle charging points; rooftop photovoltaic solar panels; energy efficient lighting, air source heat pumps and 42 cycle spaces.

The development is targeting completion in early 2026. It is Puma’s second industrial scheme in recent months, having previously provided a £15 million loan facility for a low-carbon industrial development in North Yorkshire in February.

Leigh Thomas, Group Managing Director from Kier Property, commented:

“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, added:

“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. 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.”