Valor secures London urban logistics development loan
Last-mile specialist Valor Real Estate Partners has secured a £64m debt facility with BGO for the development of a 216,000 sq ft last-mile logistics estate in Beckton, east London.
It is the first transaction between the two parties. The five-year facility will enable Valor to refinance the original acquisition of the 10-acre site and develop four self-contained logistics units ranging from 27,000 sq ft to 80,000 sq ft.
The development, set to complete in Q4 2024, is targeting a BREEAM Excellent certification and will incorporate sustainability features including high-efficiency LED lighting, roof-mounted solar panels, occupancy sensors, air-source heat pumps, electric vehicle charging points and cycle storage facilities.
Last-mile specialist Valor Real Estate Partners has secured a £64m debt facility with BGO for the development of a 216,000 sq ft last-mile logistics estate in Beckton, east London.
It is the first transaction between the two parties. The five-year facility will enable Valor to refinance the original acquisition of the 10-acre site and develop four self-contained logistics units ranging from 27,000 sq ft to 80,000 sq ft.
The development, set to complete in Q4 2024, is targeting a BREEAM Excellent certification and will incorporate sustainability features including high-efficiency LED lighting, roof-mounted solar panels, occupancy sensors, air-source heat pumps, electric vehicle charging points and cycle storage facilities.
Valor assembled the estate through two off-market acquisitions from separate owners and received planning consent for the development earlier this year. It bought the site on behalf of its joint venture with QuadReal Property Group.
Valor said Beckton is one of its high-conviction submarkets, citing supply constraints. It has amassed a portfolio measuring more than 2m sq ft across east London since 2016.
Matthew Phillips, partner and head of finance and operations at Valor, said: “BGO is a blue-chip lender, and their support, secured on attractive terms, is a strong endorsement of our approach in Beckton, where we will deliver four market-leading urban logistics units with BREEAM Excellent certification right next to the North Circular.
“We have seen commitments from a number of strong tenant covenants in the area and anticipate that the supply-demand imbalance will continue to drive rental growth.”
Martin Sheridan, managing director at BGO, said the deal marked the continuation of its high-conviction strategy on the UK and European logistics markets.
Valor was advised by Simmons & Simmons, Ogier, Town Legal, Montagu Evans, Quod and Lockton. BGO was advised by Goodwin Procter, Hollis, Savills and PwC.
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