Nuveen Real Estate has issued its first green loan in Australia, providing a A$61.5m (€37m) facility to Logos for the development of a logistics warehouse in Reservoir in Melbourne’s inner north.

The loan is part of Nuveen’s Real Estate debt strategy, which focuses on lending to institutional investors on core and core-plus real estate.

Once completed, the estate known as Reservoir Business Hub will provide approximately 43,500sqm of space in a strategic, last-mile logistics area.

Nuveen said the green loan was in line with its commitment to making its global property portfolio operationally net-zero carbon by 2040.

“In recent years, we have had an increased interest in the industrial and logistics sector as driven by growing tenant demand for modern warehouse facilities, record low vacancy and limited supply,” said Dugald Marr, managing director and head of debt for Australia & New Zealand at Nuveen

Wayne Thong, treasurer of Logos, Australia and New Zealand said: “We value their commerciality and structuring expertise, which has delivered an efficient debt structure for our investors.”

The development project is being managed by Asia-Pacific logistics real estate specialist Logos on behalf of a partnership with KKR and Mubadala Investment Company.

Thong said Logos would explore further debt opportunities with Nuveen, as it continued to grow its logistics portfolio in Australia and New Zealand.

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