Valor Real Estate Partners has completed a £101 mln (€118 mln) debt facility with Canada Life Asset Management. The five-year investment loan, referenced off gilts, represents the first transaction between the two parties.
The sub-50% LTV loan is secured against five recently acquired urban infill logistics properties, all located in high demand, critically undersupplied inner London submarkets where the re-allocation of land for residential use has restricted industrial development, pushed down availability and is underpinning rental growth.
It includes two previously vacant units on Gemini Business Park in Beckton, East London; a 21,600 ft2 property in Wandsworth, South West London; four modern distribution assets on the Tera 40 industrial estate Greenford; a 31,000 ft2 single property estate in Canning Town, East London, acquired off market and a 112,000 ft2 multi-let estate located in Mitcham, South London.
Matthew Phillips, partner and head of Finance & Operations at Valor, commented: 'This first transaction with Canada Life Asset Management adds another established global institution to our pool of lending partners. The competitive terms are an endorsement of our strategy which is focused on value-add opportunities and asset mispricing in critically undersupplied submarkets, where evolving consumer trends are driving demand from a range of occupiers. We continue to grow the platform and build relationships with lenders in the UK and in our other core European markets.'
Nicholas Bent, head of Real Estate Finance, Canada Life Asset Management, added: 'We are pleased to initiate a new lending relationship with Valor. This facility demonstrates Canada Life’s ability to secure best-in-class sponsors by providing competitive, flexible terms and meeting ambitious target completion timeframes.'
