New financing arrangement for logistics service provider Zijderlaan

Zijderlaan is investing in the construction of a new and sustainable distribution center (DC). This DC will be developed on the Nieuw Prinsenland industrial estate in Dinteloord. With this new centrally located DC along the A4 motorway, Zijderlaan is responding to the growing demand for logistics services. Additional capital is needed to realize this, and Orchard has been asked to assist the company in doing so.

The family business, with 87 years of history, is known as a broadly specialized logistics service provider. Besides daily transport, Zijderlaan has three warehouses. The construction of the new DC will take place in several phases, tailored to the needs of its customers. The overall plan provides for a capacity of 33,000m2, of which 15,000m2 will be realized in the first phase. Construction of the first phase has now started. Zijderlaan is building to the highest BREEAM certification standards.

Growth and financing needs

The company is controlled  by the third generation, complemented by a commercial director. With the company’s growth, potential acquisitions and desired investment, Zijderlaan felt it was an appropriate time to take a future-proof look at its financing arrangement.

With a view to starting construction in Q1 2024 and regular replacement investments, Zijderlaan undertook a structured refinancing process during the period September 2023 to February 2024. In doing so, it asked Orchard to support and guide. The central question concerned the choice between expanding financiers (bank and alternative financiers), or everything under one roof with one financier, but with different forms of financing.

Choice of optimal financing form  

After a thorough process, the choice was made for different forms of financing (asset-based, (green) loans and working capital financing) with one financier (ABN Amro) in order to achieve i) the best conditions, ii) the most flexibility and iii) an optimal set-up for the family. The arrangement will allow Zijderlaan to move forward for at least three to five years.

Importance of timely financing

“For us, it was important to have the financing in time to start with the construction” says Sabine Zijderlaan, managing director Zijderlaan. “The guidance and no-nonsense approach from Orchard helped to reach sound decision-making. We found that the thorough approach – where we weighed up all options – provided comfort to all stakeholders (the management, the family and the RVC), to close the financing arrangement.” 

Valuable collaboration with family businesses

Eelco van de Lustgraaf, partner at Orchard, says: “Working for and with family businesses remains a wonderful challenge time after time. There are many different dimensions involved in such an investment, which has to be a good fit with the various stakeholders. After an extensive preliminary phase and an intensive process with the bank, we have a nice package. This also focused on sustainability, which immediately led to a significant interest rate advantage for the entire arrangement.”