Valor Real Estate Partners and QuadReal secured €113.5 mln in financing from Apollo for their French urban logistics portfolio in Paris, Lyon, and Marseille.
This marks the first transaction between the European last-mile real estate specialist and Apollo.
The seven-asset portfolio, with a surface area of 120,000 m2, is situated in high-demand French urban logistics markets. A three-year loan, with extension options, from Apollo will fund renovations to upgrade these facilities, emphasizing both technical performance and environmental sustainability.
Matthew Phillips, partner and CFO, Valor, said: ‘This commitment from Apollo, obtained on competitive terms, demonstrates the continued attractiveness of urban logistics and the strong structural trends that support demand for 3PL and distribution in France’s fastest growing metropolises. This financing will help us implement a number of renovation programs with ESG improvements to create sustainable and high environmental quality logistics spaces in submarkets where quality supply is very constrained.’
Thomas Blangy, senior VP International Real Estate at QuadReal, commented: ‘Through our partnership with Valor, we have invested in over 375,000 m² of strategically positioned logistics assets across key European markets. This financing with Apollo allows us to further enhance our product offering, not only by providing well-located assets, but also state-of-the-art facilities in terms of efficiency and environmental sustainability.’
Ben Eppley, partner and head of European Real Estate Credit at Apollo, added: ‘We are pleased to enter into this new relationship with Valor and QuadReal, leading investors and operators in the urban logistics market, a sector that continues to demonstrate strong fundamentals in the target markets.’
The portfolio includes four prime Paris-area properties: a fully-leased 40,350 m2 Class A warehouse in Marly-la-Ville (tenants include Nippon Express and Urban Logistique); a 6,190 m2 Wissous warehouse (near Orly Airport) undergoing renovation for energy efficiency and yard expansion; a 5,290 m2 Orly-area asset slated for repositioning; and a 6,970 m2 Goussainville site currently under renovation.
The portfolio also features two Lyon properties: a 9,270 m2 Miribel warehouse undergoing renovations targeting BREEAM Very Good certification and BMS integration; and a partially vacant 30,142 m2 Corbas warehouse with a phased renovation plan. Additionally, a vacant 19,903 m2 warehouse in Salon-de-Provence (near Marseille) is being repositioned with improvements to office space and building efficiency.
Valor was advised by Simmons & Simmons and Oudot, Lockton and Chatham Allen & Overy Shearman acted as legal counsel for the Apollo funds.
