Pbb Deutsche Pfandbriefbank has financed a portfolio of recently-constructed and to-be constructed logistics facilities across the UK with a £147 million (€174 million) loan.
The German bank has provided the investment and development facility to Prologis UK Logistics Venture SCSp, a joint venture between Prologis and CBRE Global Investment Partners.
The loan, which closed at the end of February, finances three recently-constructed distribution centres. It will also finance the development of four additional logistics properties. Construction has begun, or is soon to begin, on the four distribution centres, which will provide 1.25 million square feet of space.
“This opportunity allowed us to bring our structuring skills to bear on a combined investment and development facility in a growth sector of the UK real estate market which is very attractive for institutional investors. The transaction is an indicative of the continued strong performance of the UK logistics sector,” said Charles Balch, head of real estate finance international, UK & CEE, at pbb Deutsche Pfandbriefbank.
“Pbb’s structuring capabilities and development underwriting expertise provide Prologis UK Logistics Venture with a flexible financing facility that meets our requirements,” added Christian Nickels-Teske, head of treasury Europe and capital markets at Prologis.