Valor, QuadReal and PGIM Real Estate strengthen partnership with £79 million financing for Tesco Purfleet Distribution Centre
Valor Real Estate Partners (“Valor”), Europe’s fastest-growing last mile specialist and QuadReal Property Group (“QuadReal”), a global real estate investment, development, and operating company have secured £79 million investment financing from PGIM Real Estate for their recent £130 million acquisition of a Tesco-let distribution centre in Purfleet, Essex. The financing from PGIM Real Estate is on behalf of its senior debt platform.
The fixed-rate facility marks the fifth transaction between Valor and PGIM Real Estate.
The 630,000 sq ft distribution centre, situated within Dolphin Park, serves as a critical hub for Tesco’s food supply chain, supporting approximately 550 stores across London and the south-east. Operating 24/7, the facility handles significant distribution volumes with 800 truck movements per day. The asset provides excellent connectivity to the M25, A13, and major ports at Tilbury and London Gateway, with circa 11.4m people reachable within a 60 min drive time.
Demand for UK last-mile logistics is robust in prime locations, underpinned by the continued growth of ecommerce and urbanisation. Across major port and core distribution markets such as London, the outlook for rental growth remains strong.
Miles Muthu, Vice President at Valor Real Estate Partners, commented: “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.”
For PGIM Real Estate, the transaction was led by James Day in the originations team.
James Mathias, senior portfolio manager for European core debt, PGIM, adds “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.”
Media contacts:
For PGIM Real Estate: Sharan Kaur | [email protected]
For QuadReal: Giles Barrie |[email protected]
About Valor Real Estate Partners
Valor Real Estate Partners LLP (“Valor”) is a pan-European industrial platform, headquartered in London, focused on urban/infill industrial and logistics properties in the UK, France, Germany and Benelux.
Founded in 2016, Valor is a full-service development management and investment business with offices in London, Paris and Berlin. Today the Company manages a c. 200+ asset portfolio totalling more than 13.5 million sq ft and more than €4.0bn of AUM on behalf of a number of global investors.
About PGIM Real Estate
With US$212 billion in gross assets under management and administration1, PGIM Real Estate provides investors and borrowers access to a range of real estate equity, real estate debt, agriculture, and impact solutions across the risk-return spectrum. PGIM Real Estate is a business of PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate’s risk management approach, execution capabilities and industry insights are backed by a 50-year legacy of investing in commercial real estate, a 140-year history of real estate financing2, and the local experience of professionals in 32 cities globally. Through its investment, financing, asset management and talent management approach, PGIM Real Estate engages in practices that strive to ignite positive environmental and social impact, while pursuing activities that seek to strengthen communities around the world. For more information visit pgimrealestate.com.
About QuadReal Property Group
QuadReal Property Group is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management are $89 billion. From its foundation in Canada as a full-service real estate operating company, QuadReal has expanded its capabilities to invest in equity and debt in both the public and private markets. QuadReal invests directly, via programmatic partnerships and through operating platforms in which it holds an ownership interest.
QuadReal seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.
1 As of 30 Sept 2024; net AUM is US$132 billion and AUA is US$47 billion.
2 Includes legacy lending through PGIM’s parent company, PFI.