Valor Real Estate Partners (“Valor”), Europe’s fastest growing last-mile real estate specialist, on behalf of its joint venture with QuadReal Property Group (“QuadReal”), a global real estate investment, operating and development company, has refinanced a portfolio of urban logistics assets across Paris, Lyon and Marseille, with a €113.5 million loan from Apollo-managed funds. It represents the first transaction between the two parties.

The seven-asset, 120,000 sqm portfolio is located across some of France’s most competitive and undersupplied urban logistics submarkets. The 3-year facility with extension options will support a number of comprehensive refurbishment programmes to deliver high-specification, sustainable and operationally efficient logistics space.

Matthew Phillips, Partner, Head of Finance and Operations, Valor said: “This commitment from Apollo, secured on competitive terms, underlines the continued attractiveness of urban logistics and the compelling structural trends supporting 3PL and distribution demand in France’s fastest-growing cities. This debt financing will support us in delivering a number of refurbishment programmes with ESG upgrades to create high-specification and sustainable logistics space in undersupplied submarkets. We are thrilled to establish a new lending relationship with the world-class team at Apollo who delivered flawless execution, and 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 375,000 sqm of strategically located logistics assets across key European markets. This debt financing deal with Apollo provides the opportunity to further enhance our existing product offering, delivering not only well-located facilities, but leading facilities in terms of efficiency and sustainability.”

Ben Eppley, Apollo Partner and Head of Real Estate Credit, Europe, said: “We are pleased to form this new lending relationship with both Valor and QuadReal, leading investors and operators in urban logistics, a sector that continues to show strong fundamentals in targeted markets. This refinancing presented an opportunity to lend into a well-capitalised, transitional business plan backed by strong sponsorship.”

Valor was advised by Simmons and Simmons (legal), Oudot (notary), Lockton (insurance) and Chatham (hedging). Allen & Overy Shearman served as legal counsel to the Apollo funds.

The portfolio includes four assets in prime Paris submarkets:

• A 40,350 sqm modern, sustainable logistics unit in Marly-la-Ville, fully let to several tenants including Nippon Express and Urban Logistique.
• A 6,190 sm unit in Wissous, close to Paris Orly airport, where Valor is delivering a comprehensive refurbishment.
  A 5,290 sqm asset near Orly airport, which was acquired with the intention to reposition as modern, sustainable logistics space.
• A 6,970 sqm site in Goussainville where Valor is due to complete a comprehensive refurbishment.

The portfolio includes two assets in Lyon:

• In Miribel, the north-east industrial zone, Valor is delivering a light refurbishment of a 9,270 sqm asset, targeting a BREEAM Very Good accreditation and incorporating building management systems.
• A 30,142 sqm asset in Corbas, 7km south-east of the city centre, which is currently part-vacant as Valor progresses with a phased refurbishment programme.

The portfolio includes a single asset in Marseilles:

• A 19,903 sqm asset close to the airport in the major logistics hub of Salon-de-Provence, which is currently vacant as Valor brings forward a repositioning programme to enhance the office space and building efficiency.

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Richard Gotla, Andrew Scorgie
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About Valor REP
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, Benelux, Spain and Italy.

Founded in 2016, Valor is a full-service development management and investment business with offices in London, Parisand Berlin. Today the Company manages a c. 200+ asset portfolio totalling more than 13.5 million sq ft and more than €3.5bn of AUM on behalf of a number of global investors.

For further information please email [email protected] or visit http://www.valorrep.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 CAD $85 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.

www.quadreal.com