Realterm has secured a circa £31m senior loan facility against its maiden UK investments for its Europe Logistics Fund.
The facility was designed to provide post-acquisition refinance and to support the refurbishment of two ‘high flow-through’ last mile logistics assets at Hardwick Grange Industrial Estate, Warrington, and Long Eaton, Nottingham, providing 257,319 sq ft and 261,904 sq ft of space respectively.
The Long Eaton refurbishment has already completed and the Warrington refurbishment is underway, with both warehouses available to let through Colliers – Colliers’ debt advisory team also advised Realterm on the senior loan facility.
Colby Pan, associate vice president, capital markets at Realterm, said: “We’re thrilled to complete our first financing in the UK including a significant capital expenditure facility, post-acquisition of two highly functional transportation-advantaged assets with high flow-through operational characteristics. With this financing, we have also established a new funding relationship with a respected lender. Colliers supported us with sourcing this loan during volatile market conditions and provided a number of viable options.”
Balazs Lados, managing director of Realterm Europe Logistics Fund, added: “We will continue our expansion of our Realterm platform into Europe, where we’ll be exclusively investing in transportation-advantaged properties in the UK and Europe and leveraging our 30+ years of global expertise in this area.”
Laurence Richardson, director in the debt advisory team at Colliers, said: “Following an extensive market search, we secured a funding partner who not only provided post-acquisition finance for the original purchase but was also able to underwrite Realterm’s operational capabilities to offer a highly competitive development capex line to support the extensive refurbishment programme.”
“Negotiating the finer details of the facility during the market volatility of late 2022 added an additional challenge, but the robustness of the sponsor’s investment thesis and pragmatism of all parties ensured that the transaction was concluded successfully.”
