PGIM Real Estate’s senior debt platform has provided £79m (€94m) in financing to Valor Real Estate Partners and QuadReal Property for their acquisition of a 630,000sqft UK distribution centre.
The Valor and QuadReal European logistics partnership has secured the investment financing for their recent £130m acquisition of a Tesco-let distribution centre in Purfleet, Essex. The fixed-rate facility is the fifth transaction between Valor and PGIM Real Estate.
Miles Muthu, VP at Valor Real Estate Partners, said: “The asset’s prime location and essential role in Tesco’s supply chain make this an attractive long-term investment. Valor’s technical expertise and speed of execution were instrumental in securing both the acquisition and financing for the Tesco Purfleet distribution centre, underlining our ability to navigate complex transactions efficiently.
“This acquisition marks our fifth collaboration with PGIM Real Estate, and we are pleased to further strengthen this valued partnership.”
James Mathias, senior portfolio manager for European core debt at PGIM, said: “The recovery in European real estate is underway, supporting conditions for the growth of income-focused debt investment.
“We remain confident in the outlook for the London Gateway with demand for UK logistics that remains robust in light of the long-term structural tailwinds of ecommerce and emerging industries like green energy supporting leasing activity.”
Thomas Blangy, SVP at QuadReal, said: “This transaction is directly in line with our global investment strategy of targeting high-growth urban logistics hubs, including key markets within the UK.
“By acquiring the Tesco-let distribution centre alongside our partners at Valor and PGIM Real Estate, we are expanding our allocation within this high-performing asset class.“
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