Last mile real estate specialist Valor Real Estate Partners has completed a €105 mln debt facility with pbb Deutsche Pfandbriefbank.
The 5-year, 60% LTV facility comprises a €54 mln acquisition tranche, €41 mln investment tranche and €10 mln VAT tranche. It represents the third transaction between the two parties and the second in France.
The loan is secured against six urban, infill logistics properties totalling 84,100 m2, all located in supply constrained Paris and Lyon submarkets.
Miles Muthu, Valor debt capital markets and transaction lead, commented: 'We are pleased to have completed on this complex portfolio financing involving the repositioning of multiple assets across different submarkets and at different stages of our development and asset management programme.
'We are grateful to the pbb team who undertook detailed analysis to understand each deal and were a trusted partner to see the transaction through in an uncertain market.'
The assets comprise a 17,824 m2 warehouse in Trappes, Paris, where Valor is undertaking a refurbishment programme to deliver modern warehouse space, due to complete in Q4 2023 and targeting businesses across the e-commerce, logistics, transport and light manufacturing sectors.
They also include a 33,144 m2 warehouse, also in Trappes, fully let to Natures et Découvertes, plus a 14,134 m2 unit In Garges, Paris, which Valor plans to fully refurbish to deliver distribution space suitable for occupiers in the e-commerce and logistics sectors. The submarket is dominated by obsolete, family-owned warehouses, with an undersupply of institutional grade space.
The other properties are a 2-hectare site in the A86 Paris submarket of La Courneuve, where Valor intends to bring forward the speculative redevelopment of a 10,166 m2 modern urban distribution park, suited to the needs of modern e-commerce and logistics businesses.
The submarket is set to directly benefit from the Grand Paris infrastructure projects as well as major urban environment improvements ahead of the 2024 Paris Olympics Games.
In Limeil, south-east Paris, Valor is developing a 3,960 m2 modern urban distribution warehouse, which is expected to complete in December 2023. It is located in a highly sought-after submarket which is characterised by a shortage of high specification product, 5km from the A86, and 14km from Paris 1st ring road.
There is a also a vacant 4,800 m2 logistics warehouse in the east Lyon submarket of Chassieu. Valor intends to undertake a full refurbishment, due to complete in June 2023, to deliver a highly functional cross-dock asset suitable for 3PL and last-mile operators.
Norbert Müller, Head of RE finance Continental Europe West at pbb Deutsche Pfandbriefbank, commented: 'We have a long-standing relationship with Valor and are very pleased to support them repositioning the different assets of this urban logistic portfolio in France.
'France is an important market for pbb and we are looking forward to other transactions with Valor.'
Valor was advised by Simmons & Simmons and Oudot & associés notaires. pbb was advised by LPA-CGR avocats and 83 Haussmann notaires.