German lender pbb Deutsche Pfandbriefbank has provided a £147 mln (€174 mln) loan facility to subsidiaries of Prologis UK Logistics Venture (UKLV), a joint venture with CBRE Global Investment Partners, for seven logistics distribution centres.
The facility will be used to refinance three newly built logistics distribution centres and fund the development of four additional logistics distribution schemes.
'Pbb’s structuring capabilities and development underwriting expertise provide Prologis UK Logistics Venture with a flexible financing facility that meets our requirements,' commented Christian Nickels-Teske, head of treasury Europe and capital markets, Prologis. 'This transaction expands our long-standing relationship with pbb Deutsche Pfandbriefbank, a trusted and reliable partner.'
According to Pbb, the assets are located throughout the UK in established prime logistics locations. The development properties are development sites for which vertical construction has commenced or will commence in the near term in order to provide around 1.25 million ft2 (115,000 m2) of logistics accommodation.
'Prologis has been a very important client for Pbb across Europe for many years,' said Charles Balch, head of real estate finance international, UK & CEE at pbb Deutsche Pfandbriefbank. 'We are particularly pleased to support their newly formed joint venture with CBRE Global Investment Partners.
'This opportunity allowed us to bring our structuring skills to bear on a combined investment and development facility in a growth sector of the UK real estate market which is very attractive for institutional investors. The transaction is an indicative of the continued strong performance of the UK logistics sector,' Balch concluded.
The transaction closed at the end of February.
