Investec Structured Property Finance has backed a 153,000sqft South London logistics development project with a £27m (€30.1m) loan.

Investec said it has agreed to provide Valor Real Estate Partners the senior loan to fund the speculative development of the logistics park in Mitcham.

The 48-month loan will support Valor through the planning, development and stabilisation periods.

Valor acquired the site in January this year and proposes to redevelop the existing 110,000sqft estate into a modern trade counter and mid box units.

Erin Clarke, at Investec Structured Property Finance, said: “The growing appeal of urban logistics has been well-documented as consumer habits have evolved; the rise of e-commerce and increasing demand for same day delivery make sites like this near large cities very attractive.�

Matthew Phillips, principal at Valor, said: “As London’s industrial supply and demand imbalance continues to grow, this site will provide high specification new product with prime access to the densely populated submarkets.�

Phillips added that the financing proceeds provide additional capital for Valor to deploy into future industrial opportunities in London and other pan-European urban logistics assets.