Valor Real Estate Partners has secured a £64m debt facility with BGO for the development of a 216,000 sq ft sustainable last-mile logistics estate in Beckton, East London.
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.
Valor received planning consent for the development, which is due to complete in Q4 2024, earlier this year.
It is targeting BREEAM Excellent for the units, which include LED lighting, roof-mounted PV panels, occupancy sensors, air-sourced heat pumps and EV charging points.
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, added: “BGO are thrilled to be funding Valor and QuadReal on this market-leading urban logistics scheme in London. This deal marks the continuation of our high conviction strategy on the UK and European logistics markets and we are pleased to be executing on this with a best-in-class sponsor group on high-quality, well-located assets.”
Valor was advised by Simmons & Simmons, Ogier, Town Legal, Montagu Evans, Quod and Lockton. BGO was advised by Goodwin Procter, Hollis, Savills and PwC.
