Valor Real Estate Partners (Valor) acting on behalf of its joint venture with QuadReal Property Group (QuadReal) has financed a portfolio of urban logistics assets in Paris, Lyon and Marseille, via a €113.5m loan from funds managed by Apollo. This is the first transaction between the two parties.
The portfolio of seven assets, with a surface area of 120,000m², is located in some of the most competitive and underserved urban logistics submarkets in France. This three-year loan, with extension options, will support ambitious renovation programs that will deliver logistics spaces with strong technical characteristics and high environmental quality.
Matthew Phillips, Partner and CFO, Valor, said: “This commitment from Apollo, secured on competitive terms, is a testament to the continued attractiveness of urban logistics and the strong structural trends supporting demand for 3PL and distribution in France’s fastest growing metropolises. This financing will help us implement a number of renovation programs with ESG improvements to create sustainable and high-quality logistics spaces in submarkets where quality supply is highly constrained. We are delighted to begin this new relationship with the Apollo team, who have been particularly effective and with whom we look forward to expanding this partnership in the years to come.”
Thomas Blangy, Senior Vice President International Real Estate at QuadReal, said: “Through our partnership with Valor, we have invested in over 375,000m² of logistics assets strategically positioned across key European markets. This financing with Apollo allows us to further enhance our product offering, not only by providing well-located assets but also by providing state-of-the-art facilities in terms of efficiency and environmental sustainability.”
Ben Eppley, Partner and Head of European Real Estate Credit at Apollo said: “We are pleased to enter into this new relationship with Valor and QuadReal, leading investors and operators in the urban logistics market, a sector that continues to demonstrate strong fundamentals in the target markets. This financing provided an opportunity to lend on the basis of a very well-capitalised transition business plan and supported by a strong collaboration.”
Valor was advised by Simmons and Simmons (legal), Oudot (notary), Lockton (insurance) and Chatham (hedging). Allen & Overy Shearman (legal) advised the Apollo funds.
Image source - Valor.
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