In a recent development, PGIM Real Estate has extended a floating-rate senior investment loan to Valor Real Estate Partners for a significant industrial portfolio in Greater London. This collaboration marks the fourth transaction between PGIM and Valor.

The portfolio, spanning 518,000 ft^2, comprises 11 properties strategically located near the M25 motorway. Impressively, six of these properties lie within the North and South circular ring roads. Currently, the portfolio boasts a 99% occupancy rate, housing 22 tenants, some of which are leading multinational corporations.

James Day, from PGIM Real Estate’s Originations team, spearheaded the transaction. The financing was channeled through PGIM Real Estate Senior Europe, a strategy primarily centered on floating rate lending. On a broader scale, the European senior debt platform offers both fixed and floating rate loan solutions.

James Mathias, the senior debt portfolio manager at PGIM Real Estate, expressed confidence in the quality of industrial and logistics properties in urban locations, especially like the current portfolio. He emphasized the firm’s enthusiasm to collaborate with Valor, a trusted partner with a rich history of cooperation.

Miles Muthu, Vice President at Valor, highlighted the unique nature of the portfolio, describing it as a collection of “true” last-mile assets. These assets, located within the North and South London circular ring roads, offer unparalleled connectivity across London. He also mentioned the extensive ESG refurbishments carried out on most of the assets, resulting in specifications that are in high demand by last-mile tenants and operators. Muthu expressed gratitude for PGIM’s continued support in Valor’s expansion endeavors across major UK cities.

Furthermore, PGIM Real Estate’s European debt platform specializes in alternative financing, encompassing senior debt, whole loans, mezzanine, and co-invest equity. To date, the platform has executed transactions worth over £10 billion across 207 senior and high-yield debt investments in the UK and Continental Europe.

Valor, on the other hand, has access to capital sources in the £billions, earmarked for industrial investments in major European cities, including London, Manchester, Birmingham, Paris, and Berlin, among others.