Chancerygate is seeking a restructuring of the Liverpool City Region Combined Authority (LCRCA) funding it received for the Mersey Reach logistics development.
The developer was granted planning permission in July 2017 for the 212,000 sq ft scheme at the former Peerless Edible Oils factory on Dunnings Bridge Road, Netherton.
In the same month, the city region’s combined authority awarded Chancerygate £1,144,662 of Single Investment Fund grant support for the project.
Now the developer, in partnership with The Chrysalis Fund, is requesting the LCRCA replace this grant with a 50% share of a commercial loan of £9,025,000 (£4,512,500).
The Chrysalis Fund has been working with Chancerygate to provide debt finance to support the construction of the proposed facilities.
The decision to request a change in the funding model for the scheme has come as a result of limitations to the amount of funding Chrysalis can provide.
According to a report which will be discussed at meeting of the LCRCA today (8 March), such change in award will allow the combined authority to recoup its investment in the project with interest, and allow Chancerygate to potentially invest in two further projects in the city region.
The 13.5-acre development site in Sefton was the former Peerless Edible Oils factory, which closed more than 20 years ago.
The new £20 million development will comprise six self-contained industrial and logistics units ranging from 12,000 sq ft to 60,000 sq ft.
A 36,000 sq ft unit has been pre-let to Grafton Group Plc to trade as a Selco Builders Warehouse.
Chancerygate has also pre-sold a two-acre plot on the front of the site to Euro Garages, which will build it out as petrol filling station and a convenience store plus a drive-thru Starbucks coffee store.