RBC and Otera issue £525m loan for St Modwen logistics pipeline

RBC Capital Markets has partnered with Otera Capital to provide a £525m hybrid development and investment debt facility to Blackstone-backed developer St Modwen. The bank has arranged a five-year financing of St Modwen’s development pipeline and subsequent stabilisation of its logistics properties in major hubs across the UK. Otera is the real estate lending subsidiary of the Caisse de dépôt et placement du Québec. The deal marks Otera’s first real estate debt investment in the UK. The completed pipeline will offer 5m sq ft of logistics space, consisting of small, mid, and big-box units. St Modwen was acquired in 2021 by funds managed by Blackstone. Gadi Jay, senior managing director in Blackstone’s real estate capital markets team, said the deal expands a “deep and longstanding relationship with RBC”, adding that the team is aiming to do more with Otera in the future. Axel Brinkmann, European head of RBC’s real estate capital partners and real estate corporate banking divisions, said: “The hybrid and bespoke nature of the facilities reflects RBC’s ability to structure and execute innovative and market leading debt solutions which support our clients’ strategic aims.” Rana Ghorayeb, president and chief executive at Otera, said the UK is a strategic market that provides portfolio diversification. Ghorayeb added: “This transaction aligns well with our strategy of supporting our long-standing best-in-class relationships, such as Blackstone and RBC, as well as establishing a new relationship with St Modwen on high-conviction assets with a strong ESG focus in our targeted countries of Canada, the USA and the UK. “We see a solid alignment and a shared approach to risks with RBC’s ability to structure and implement innovative and market-leading debt solutions.” CBRE Loan Services acted as facility agent and security agent. To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews