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.