Trafford Council has announced it provided a £70m loan to The Hut Group in a funding round at the end of last year.
The debt facility from Trafford Council is to finance the development of The Hut Group’s new 1m sq ft headquarters at Manchester Airport, which will add around 10,000 jobs to the area when complete.
The online beauty retailer raised more than £1bn in December through a mix of new and existing investors. The agreement with Trafford Coucil was signed on 12 December.
It said the return on investment from the loan will support public services and contribute to the local economy.
CBRE Capital Advisors advised the council on the deal.
“The Council’s investment will support huge job creation and economic growth in a key Greater Manchester location at Manchester Airport,” said Trafford Council’s executive member for finance and investment Tom Ross.
“At a time when local authority budgets remain under pressure this addition to the Council’s investment strategy is very welcome. The Council’s investment strategy continues to provide us with revenue which we can then use to support our frontline services.”
A senior executive from The Hut Group added: “As we expand on our ambitious global proposition, we are committed to continued investment in the North West, where the business was founded.
“By partnering with Trafford Council, we can create a broad base of employment across technology, marketing, content, digital commerce and distribution industries in the region, which will be crucial to the North West’s growth and vision.”
CBRE’s director of investment advisory Henry Randolph said: “This is a great example of our ability to identify high quality schemes and borrowers and then structure a debt package that provides appropriate risk and return for Trafford Council whilst delivering competitive terms for the borrower by offering flexibility, certainty and speed of delivery.”
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