Canada Life provides £101m debt facility for Valor

Last-mile specialist Valor Real Estate Partners has secured a £101m debt facility with Canada Life Asset Management. The five-year investment loan, referenced off gilts, represents the first transaction between the two parties. The loan is secured against five recently purchased urban infill logistics properties. Valor said the assets are all located in undersupplied inner London submarkets where the reallocation of land for residential use has restricted industrial development, pushed down availability and is underpinning rental growth. The properties are: ■ Two facilities at Gemini Business Park in Beckton, E6, where Valor has completed a sustainability-led refurbishment. It has developed 14,500 sq ft of warehousing space, leased in October on a 10-year term to Jardine Group. ■ A 21,600 sq ft property in Wandsworth, SW18, which Valor acquired from a private landlord and leased to womenswear brand Phase Eight, with a rent review due in 2026. ■ Four distribution assets on the Tera 40 industrial estate in Greenford, west London, acquired in August and totalling 341,000 sq ft. It is let to Tesco, Palletways, Royal Mail and Micheldever. ■ A 31,000 sq ft, single-property estate in Canning Town, E16, acquired off-market and 100% occupied by three tenants, with the leases subject to upcoming open-market rent reviews and fixed uplifts. ■ A 112,000 sq ft multi-let estate in Mitcham, south London, which is 72% occupied by three tenants and subject to upcoming open-market rent reviews. Valor recently completed the refurbishment of a further vacant unit, increasing the yard area by 20%. Matthew Phillips, partner and head of finance and operations at Valor, said: “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 at Canada Life Asset Management, said: “This facility demonstrates Canada Life’s ability to secure best-in-class sponsors by providing competitive, flexible terms and meeting ambitious target completion timeframes. “This sub-50% LTV loan is secured by a portfolio of London logistics assets, a sector underpinned by very strong demand and supply dynamics. We look forward to building the relationship with Valor further as they continue to invest in the UK and Europe.” The transaction was led by Mark Dunstan, director in Canada Life Asset Management’s real estate finance team. The financing supports Canada Life’s annuity business. Valor was advised by Simmons & Simmons, Ogier (Jersey) and Lockton. Canada Life Asset Management was advised by Stephenson Harwood, Bedell Cristin (Jersey) and Vandenbulke (Luxembourg). To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews Image from Valor Real Estate Partners