Valor Real Estate Partners, a fast-growing last-mile real estate specialist, has completed a €54m debt facility with Nuveen Real Estate’s European debt fund.
The five-year, 65% loan-to-cost facility comprises a €33.8m refinancing tranche and €19.7m for capital expenditure to support repositioning activity across three assets.
The loan is secured against three urban infill logistics properties, all located in submarkets of Berlin, which Valor said have an acute shortage of high-specification distribution space.
The assets comprise a fully pre-let distribution warehouse redevelopment in Berlin Pankow, due for completion soon; a sustainability-led refurbishment opportunity 12km north-east of Berlin city centre; and a low-density site on Neuenhagen Business Park, where Valor intends to undertake a light refurbishment when the current tenant’s lease expires.
Miles Muthu, Valor’s debt capital markets and transaction lead, said: “Given the wider macroeconomic environment, our defensive value-add strategy targeting urban infill logistics assets within critically undersupplied submarkets has been well received by prospective lenders. Nuveen is fully aligned with our strategy for these assets and we look forward to working with its experienced team moving forward.”
Peter Hansell, senior director, real estate debt strategies, Europe, at Nuveen, added: “The loan is the first investment for Nuveen’s fourth European debt strategy and represented an excellent opportunity to make an investment secured on European last mile assets working alongside an experienced and successful partner. Nuveen continues to seek similar value-add lending opportunities in Europe partnering with strong platforms such as Valor.”
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