Valor Real Estate Partners and QuadReal Property Group have secured £79m of investment financing from PGIM Real Estate for their recent £130m acquisition of a distribution centre in Purfleet, Essex, let to Tesco.
The fixed-rate facility was provided by PGIM Real Estate on behalf of its senior debt platform and marks the fifth transaction between Valor and PGIM Real Estate.
The 630,000 sq ft distribution centre, which is situated in Dolphin Park, supports approximately 550 Tesco stores across London and the South East.
Miles Muthu, vice president at Valor Real Estate Partners, said: “The asset’s prime location and essential role in Tesco’s supply chain make this an attractive long-term investment. Valor’s technical expertise and speed of execution were instrumental in securing both the acquisition and financing for the Tesco Purfleet distribution centre, underlining our ability to navigate complex transactions efficiently. This acquisition marks our fifth collaboration with PGIM Real Estate, and we are pleased to further strengthen this valued partnership.”
James Mathias, senior portfolio manager for European core debt, PGIM, added: “The recovery in European real estate is underway, supporting conditions for the growth of income-focused debt investment. We remain confident in the outlook for the London Gateway with demand for UK logistics that remains robust in light of the long-term structural tailwinds of ecommerce and emerging industries like green energy supporting leasing activity. We are excited to partner once again with a trusted partner in Valor and QuadReal and continue our long-standing relationship.”
Thomas Blangy, senior vice president at QuadReal, said: “This transaction is directly in line with our global investment strategy of targeting high-growth urban logistics hubs, including key markets within the UK. By acquiring the Tesco let distribution centre alongside our partners at Valor and PGIM Real Estate, we are expanding our allocation within this high-performing asset class.”
