Pigeon, a leading land promoter, developer and property investor has secured a multi-million-pound green loan from Virgin Money to fund a new 86,316 sq ft 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 BREEAM1 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 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, said: “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, said: "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 account for 5% of the UK emissions2, so providing this loan plays a part in delivering a more environmentally friendly building stock, and works towards Virgin Money’s Mobiliser Fund ambition to have 20% of business lending balances to financing the transition to next economy by 2027.
Virgin Money’s specialist Hotel & Real Estate Finance team offers tailored financial solutions to businesses across the hotel and real estate sectors. Further information can be found at https://uk.virginmoney.com/business/real-estate/, or by contacting Jonathan Sant, senior director real estate finance, at jonathan.sant@virginmoney.com or 07796703288.
Notes to Editors
1A BREEAM certified rating reflects the performance achieved by a project and its stakeholders, as measured against the BREEAM standard and its benchmarks. The rating enables comparability between projects and provides assurance on performance, quality and value of the asset.
The BREEAM ratings range from Acceptable (In-Use scheme only) to Pass, Good, Very Good, Excellent to Outstanding and it is reflected in a series of stars on the BREEAM certificate.
For more information visit the BREEAM website. Link opens in a new window
2 UK Climate Change Committee 7th carbon budget Link opens in a new window, page 251