US logistics specialist Realterm, on behalf of its Realterm Europe Logistics Fund, has secured a £31 mln (€34.7 mln) senior loan for two logistics assets in the UK’s Midlands and North-West.
The facility will enable post-acquisition refinance and support the refurbishment of the last mile logistics sheds.
Located in Hardwick Grange Industrial Estate, Warrington, and Long Eaton, Nottingham, they provide 23,905 m2 and 24,331 m2, respectively.
The comprehensive refurbishments have been completed at Long Eaton and have begun at Warrington.
Laurence Richardson, director in the Debt Advisory team at Colliers, said: ‘Following an extensive market search, we secured a funding partner who not only provided post-acquisition finance for the original purchase but was also able to underwrite Realterm’s operational capabilities to offer a highly competitive development capex line to support the extensive refurbishment programme. Negotiating the finer details of the facility during the market volatility of late 2022 added an additional challenge, but the robustness of the sponsor’s investment thesis and pragmatism of all parties ensured that the transaction was concluded successfully.’
Colby Pan, associate VP, Capital Markets, Realterm added: ‘We’re thrilled to complete our first financing in the UK including a significant capital expenditure facility, post-acquisition of two highly functional transportation-advantaged assets with high flow-through operational characteristics. With this financing, we have also established a new funding relationship with a respected lender. Colliers supported us with sourcing this loan during volatile market conditions and provided a number of viable options.’
Balazs Lados, managing director, Realterm Europe Logistics Fund commented: ‘We will continue our expansion of our Realterm platform into Europe, where we’ll be exclusively investing in transportation-advantaged properties in the UK and Europe and leveraging our 30+ years of global expertise in this area.’
Realterm was advised by the Colliers Debt Advisory team on the loan facility.
The warehouses are now offered for lease by the Colliers Industrial & Logistics team.
