PGIM Real Estate has provided Valor Real Estate Partners (Valor) with a floating-rate senior investment loan for a Greater London multi-let industrial portfolio.
This is the fourth transaction between the two parties. The loan volume is thought to be approximately £80 mln.
The 11-property, 518,000 ft2 portfolio is located near the M25, with six of the properties within the North and South circular ring roads. It is 99% occupied by 22 tenants including several major multinational corporations.
The transaction was led by James Day in the Originations team at PGIM Real Estate. The financing was provided on behalf of the firm’s senior debt strategy, PGIM Real Estate Senior Europe, which is predominantly focussed on floating rate lending. More broadly, the European senior debt platform has the ability to provide solutions across both fixed and floating rate loans.
James Mathias, portfolio manager for senior debt at PGIM Real Estate, commented: 'Against the backdrop of challenging market conditions, we have conviction in high-quality industrial and logistics properties in in-fill urban locations, such as this portfolio. We are excited to partner with Valor, and work with a trusted partner with whom we hold a long-standing relationship.'
Miles Muthu, vice president at Valor added: 'This hard-to-replicate portfolio of “true” last mile assets is located within the North and South London circular ring roads with excellent connectivity across London. Valor’s comprehensive ESG refurbishments undertaken on the majority of the assets has resulted in buildings boasting specifications highly sought after by last-mile tenants and operators. We are pleased to have financed this portfolio with PGIM, a long-standing financing partner of Valor, who continue to support us in our expansion across major cities in the UK.'
PGIM Real Estate’s European debt platform provides alternative financing, including senior debt, whole loans and mezzanine with co-invest equity. The platform has completed over €11.4 bn across over 207 senior and high yield debt investments in UK and Continental Europe, through its senior debt strategy and PRECap series of funds.
Valor has multiple sources of capital totalling more than €2 bn of dry powder for industrial investment within major urban cities across Europe – this includes in particular London, Manchester, Birmingham, Paris, Lyon, Berlin, Munich, Frankfurt, Hamburg, Duesseldorf, Amsterdam, Rotterdam, Milan, Madrid and Barcelona.