Transaction extends Blackstone relationship and marks the latest in a series of financings that Valor and QuadReal have secured to support the expansion of their urban logistics platform across Europe

Valor Real Estate Partners (“Valor”), Europe’s fastest-growing specialist in urban logistics, on behalf of its joint venture with QuadReal Property Group (“QuadReal”), a global real estate investment, development and operating company, has completed a £260 million refinancing with Blackstone Real Estate Debt Strategies (“BREDS”), secured against its flagship VIQR 1 London Urban Logistics Portfolio (the “Portfolio”).

Totalling approximately one million sq ft, the Portfolio represents a benchmark in ESG-led urban logistics, with 81% of the assets EPC A or B rated and three certified BREEAM Excellent. The transaction, which represents the largest debt facility Valor has entered into, will enable the joint venture to continue driving long-term value creation through active asset management.

The Portfolio totals 14 urban logistics and light industrial assets, all located in high-barrier, infill London submarkets. Acquired in separate transactions, the assets all benefit from their strategic proximity to large population centres, transport nodes, and key consumption zones, making them ideally suited for last-mile delivery, e-commerce fulfilment, and essential service logistics.

The Portfolio is leased to a diverse mix of national and regional tenants operating across retail, parcel delivery, logistics, food distribution, and e-commerce fulfilment. The majority of assets are multi-let, offering strong income diversification and downside protection, and have benefited from heavy refurbishment programs completed between 2022 and 2024. Initiatives have included the installation of LED lighting, EV charging points, solar PV readiness, enhanced building insulation, and tenant engagement programmes designed to promote sustainable operations and data transparency.

In-place rents remain reversionary relative to current market levels, giving the joint venture further headroom to enhance income through lease re-gears, refurbishments, and ESG-led repositioning activity. The latter is part of Valor’s ambitious roadmap to improve energy performance across its entire 15 million sq ft estate.

The transaction marks the latest in a series of senior financings that Valor has closed to support the expansion of its pan-European urban logistics platform. Since the start of 2021 it has completed 19 new loan facilities, a mix of development and investment, with 14 partners, totalling €1.4 billion.  

Matthew Phillips, Partner and Head of Finance at Valor, commented: “This portfolio is arguably the best demonstration of our ability to acquire underutilised assets in the most supply-constrained locations and transform them into high-quality, future-proof logistics facilities that meet the evolving needs of occupiers. Leveraging our vertically integrated management model and hands-on asset management team has enabled us to attract and retain a broad range of businesses for whom proximity to consumers and operational efficiency is critical.”

“The facility represents our largest refinancing to date and provides us with significant firepower to continue executing on our strategy. Following a highly competitive process, we have expanded our lending relationship with Blackstone, whose shared conviction in the long-term fundamentals of urban logistics and speed of execution made them an ideal financing partner. It further demonstrates the confidence that leading global investors and lenders have in Valor’s market insight, operating model, and ability to unlock value in one of the most structurally supported sectors in real estate.”

Stefano Tomaselli, Managing Director at Blackstone, added: “We are extremely pleased to continue to grow our lending relationship with Valor and QuadReal against this high-quality, last-mile portfolio. Our ability to underwrite large portfolios efficiently while providing certainty of execution throughout market cycles allows us to consistently deliver for our borrowers.”

Thomas Blangy, Senior Vice President at QuadReal, added: “This successful refinancing is testament to the strength of our London urban logistics portfolio, and represents an important milestone in the execution of our global investment strategy.  The 14 assets are not only well-located, they represent the benchmark for ESG-led urban logistics.

“Together with Valor, we have built a high-quality portfolio of industrial and logistics assets across the UK and Europe, all in line with our strategy of targeting major logistics hubs in key target markets, and this transaction will help us to grow our presence in London further.”