PGIM Real Estate (“PGIM”), the world’s third largest real estate investment firm with $210 billion in assets under management and administration globally as of March 31, 2025, has lent a further £40 million to the Valor Real Estate (“Valor”) and QuadReal Property Group (QuadReal) logistics joint venture (“the JV”), taking its loan position in a portfolio of five UK assets to £119 million.
The floating rate loan – completed on behalf of PGIM’s senior debt platform and its sixth debt transaction with Valor – will support the JV’s acquisition of four last-mile assets in London and Birmingham, adding to the £79 million PGIM provided in January 2025 for the acquisition of a 630,000 sq ft Tesco distribution centre in Essex.
The four assets covered by the additional loan total 255,000 sq. ft, comprising three small box warehouses in London and a light industrial estate in Birmingham. The warehouses, located in key logistics markets of Poplar, Enfield and Staines, range from 18,000 sq. ft to 42,000 sq. ft, while the light industrial estate is 20 minutes from Birmingham city centre and includes 10 units ranging from 6,700 sq. ft to 13,000 sq. ft. Valor’s business plan includes repositioning vacant units to enhance both functionality and improve their energy efficiency.
The assets are let to a mixture of 3PLs, distributors and local businesses, providing further diversification and bringing the combined portfolio occupancy to 93%.
The Tesco distribution centre in Thurrock, Essex, was acquired by Valor and QuadReal for £130 million in January 2025. At the time of purchase, it represented the UK’s largest single-transaction logistics transaction since 2022 and the largest single-asset transaction in the £4billion Valor-QuadReal joint venture.
James Day, Vice President, European Senior Debt Origination, PGIM Real Estate, said: “This transaction builds on our longstanding relationship with Valor and Quadreal, and we’re pleased to continue our support of the joint venture. The additional financing reflects our confidence in the strategy and the strength of the UK logistics market, which remains a resilient sector underpinned by strong fundamentals and occupier demand.”
Miles Muthu, Vice President Capital Markets, Valor Real Estate Partners, added: “This latest financing further strengthens our relationship with PGIM. Their continued support underscores the quality of our partnership and the strength of the portfolio we are assembling with QuadReal. These assets, located in key urban logistics markets, provide the diversification and resilience we target across the UK. Valor remains highly active in the market and we are keen to continue deploying capital into the right opportunities as demand for modern, strategically located logistics space remains strong and is expected to grow in these undersupplied submarkets.”
Thomas Blangy, Senior Vice President at QuadReal, commented: “This transaction reflects the strength and quality of the portfolio we have built with Valor, and represents a vote of confidence in our approach. With increasing demand and limited supply, logistics remains a high conviction sector for QuadReal, and the acquisition of these four assets is firmly in line with our global investment strategy of targeting high growth urban logistics hubs in key markets across Europe and the UK.”
Through its comprehensive debt offering, PGIM Real Estate offers full access to investment opportunities within the capital stack in select markets with $131 billion under management or advisement in strategies ranging from senior loans secured by core stabilised property, to enhanced credit and higher yielding products.
