Valor Real Estate Partners and QuadReal Property Group have secured a new dual tranche revolving credit line for its €1bn (£885m) last mile logistics joint venture (JV), comprising a £100m tranche and a €100m (£88m) tranche, with HSBC and CIBC.
The facility will provide the JV with additional funding flexibility and liquidity as it seeks to accelerate its investment programme.
The three year facility represents the latest milestone in the group’s financing strategy, while the revolving credit line will provide “considerable flexibility”, enabling it to respond more quickly to investment opportunities and to aggregate a portfolio of assets before refinancing with longer term debt.
Last November, Valor acquired a 144,000 sq ft industrial estate in Barking, East London, the first made on behalf of the JV.
Matthew Phillips, principal at Valor, said: “Agreeing this sizable facility is an important step following the launch of the QuadReal JV last year and will allow us to accelerate our investment programme.
“The timing has allowed us to take advantage of strong lender interest for exposure to the high growth urban logistics sector as well as the favorable interest rate environment.”