Legal & General’s (L&G) real estate debt platform has provided half of a £500m (€588m) debt facility secured by UK cold-storage company Magnavale.
L&G said it invested £250m on behalf of a number of internal and external client mandates, as part of the total amount co-arranged by L&G and an unnamed US institutional investor.
Sadel Group-owned Magnavale, provides temperature-controlled storage and value-added services for the food industry operating from four cold-storage facilities.
James Spencer-Jones, head of real estate debt for UK and Europe at L&G, said: “I’m delighted to announce we’re expanding into cold-storage within our real estate debt portfolio, in particular with a market-leading provider such as Magnavale.
“This investment provides an opportunity to support critical infrastructure within our supply chains, to reduce food waste and potential supply shortages.”
Andrew Lawrence, director, Sadel and Magnavale, said: “We are proud to partner with L&G and our US institutional co-investor to support Magnavale’s continued growth. Their backing is a strong endorsement of both our strategy and the critical role that cold-chain infrastructure plays in securing the future of the UK’s food supply chain.
“This investment reinforces Sadel’s approach of building best-in-class operations and prioritising efficiency through targeted, long-term investment. This partnership enables us to accelerate our expansion, enhance resilience across our national network and deliver energy-efficient, future-ready facilities that meet the evolving needs of our customers and the wider economy.”
Patrick Sweeney, L&G investment manager for real estate debt, UK and Europe, said: “We have high conviction for the UK cold-storage sector, which demonstrates unique and compelling investment fundamentals.
“Magnavale has invested a significant amount in future proofing their portfolio and we are delighted to be supporting them in their next phase of growth.”
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