Johnsey Estates raises £16 million
Pontypool based property development and investment business Johnsey Estates has raised £16 million to refinance previous debt facilities and provide working capital for the company’s key development sites including Mamhilad Park Estate.
With over 180 occupiers on site, Mamhilad Park Estate offers 1.5 million square feet of office and industrial space including the former Grade 2 listed Nylon Spinners complex. It was first purchased by Johnsey Estates in 1986 and is now home to some 1800 people spanning a diverse range of sectors including professional services, warehousing, distribution and the public sector.
The £16 million loan from Lloyds Bank will be used to ensure the long-term sustainable development of Mamhilad Park Estate with Johnsey Estates continuing to work with Torfaen County Borough Council to progress the development of an urban village alongside the existing buildings on site. The planning authority awarded a resolution to grant planning consent for the major mixed-use regeneration project that includes 900 houses in July 2020.
Chairman of Johnsey Estates, Andrew Wilkinson said: “We’re absolutely committed to a long-term joined up approach with the creation of our urban village central to our business strategy; creating a place where people want to live and work, now and in the future.
“Life has changed for us all over the last year but we continue to work with Torfaen County Borough Council on our master plan and we’re also responding to the needs of our occupiers with flexible and affordable high quality work space. This funding from Lloyds means that we are able to ramp up our investment; working with our occupiers and our stakeholders to invest in the future and creating a vibrant, sustainable and distinctive place that people want to be a part of.”
Chief Executive of Johnsey Estates, James Crawford added: “We pride ourselves on flexibility and doing what we can to support businesses, especially through these unprecedented times.
“Covid-19 has certainly impacted the way in which we all work but it hasn’t stopped businesses needing working space. In fact, a large proportion of our public and private sector occupiers have renewed their leases this year and there are many start-ups and private sector businesses who have enjoyed strong growth over the last 12 months meaning that their space requirements have actually increased. We have also seen an increase in those working from home preferring to relocate to our flexible and Covid-19 secure self-contained offices; taking advantage of the fibre optic connectivity and good accessibility with excellent car parking rather than struggling with the challenges of difficult home working environments.”
Shon Pallickaleth, Director, Real Estate and Housing for Lloyds Bank said: “This investment represents a significant boost not only for one of South Wales’ leading property developers but the wider regional economy as we look to support Wales’ recovery and a sustainable return to growth in the long-term. The team at Johnsey Estates is developing an exciting portfolio of sites including Mamhilad Park Estate, which embodies the exceptional ecosystem and approach to facilities that play such an important part in supporting business growth. We look forward to being by the side of Johnsey Estates as it continues to invest in its portfolio.”
Johnsey Estates was originally set up in October 1958 trading as TA Johnsey Ltd by the late Terry and Margaret Johnsey to develop a site at Gaskell Street in Newport which had been acquired for their transport business.