Green Loan for Eco-friendly UK Industrial Development

Land promoter, developer and property investor Pigeon has secured a multi-million-pound green loan from Virgin Money to fund a new 86,316 square foot industrial warehouse and office space at Theobald’s Business Park in Cheshunt, Hertfordshire.

Pigeon is aiming for the highest standards of efficiency and functionality with the project, which is known as ‘The MAX50 scheme’. Featuring a mezzanine floor and office space, this modern facility aims to meet the growing demand for premium industrial and commercial environments.

In a landmark move, Virgin Money’s Hotel & Real Estate Finance team provided its first green loan to fund the development, supporting Pigeon’s Environmental, Social, and Governance (ESG) strategy and their transition towards net zero. The project is aiming to meet high environmental standards, with EPC A and BREEAM Excellent ratings.

The property will be leased to Stephen James (Automotive) Ltd, a BMW and Mini Dealership, as a service centre, paint and body repair shop, parts distribution hub and central office facility to support its dealerships around the Greater London and South East area.

The MAX50 scheme perfectly aligns with both our commitment to providing sustainable finance and Pigeon’s ESG strategy.

The groundbreaking ceremony for the MAX50 scheme was conducted in March, with the development expected to be completed by early 2026.

Hugh French, development director at Pigeon, says: “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.

“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.”

Jonathan Sant, senior director real estate finance at Virgin Money, adds: “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.”

Non-residential buildings are responsible for an estimated 5 per cent of UK emissions and Virgin Money tells FM Magazine loans are playing an important role by supporting more environmentally friendly building stock.

The company adds its Money’s Mobiliser Fund has set a 20 per cent target for business lending balances that finance the transition to ‘next economy’ by 2027.

Visit https://uk.virginmoney.com/business/real-estate/.