PGIM Real Estate has provided an additional $40m (€45.9m) loan to Valor Real Estate and QuadReal Property’s logistics joint venture, increasing its total financing for five UK properties to £119m.
The real estate fund manager said the floating rate loan, which represents the sixth debt transaction with Valor, will support the joint venture’s acquisition of four last-mile assets in London and Birmingham, adding to the £79m PGIM provided in January this year for the acquisition of a 630,000sqft Tesco distribution centre in Essex for £130m.
James Day, vice president, European senior debt origination, PGIM Real Estate, said: “This transaction builds on our longstanding relationship with Valor and Quadreal, and we’re pleased to continue our support of the joint venture.
“The additional financing reflects our confidence in the strategy and the strength of the UK logistics market, which remains a resilient sector underpinned by strong fundamentals and occupier demand.”
Miles Muthu, vice president, capital Markets, Valor Real Estate Partners, said: “This latest financing further strengthens our relationship with PGIM. Their continued support underscores the quality of our partnership and the strength of the portfolio we are assembling with QuadReal. These assets, located in key urban logistics markets, provide the diversification and resilience we target across the UK.
“Valor remains highly active in the market and we are keen to continue deploying capital into the right opportunities as demand for modern, strategically located logistics space remains strong and is expected to grow in these undersupplied submarkets.”
Thomas Blangy, senior vice president at QuadReal, said: “This transaction reflects the strength and quality of the portfolio we have built with Valor, and represents a vote of confidence in our approach.
“With increasing demand and limited supply, logistics remains a high conviction sector for QuadReal, and the acquisition of these four assets is firmly in line with our global investment strategy of targeting high growth urban logistics hubs in key markets across Europe and the UK.”
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