(London) – Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), announces that it has completed a £48 million financing facility to subsidiaries of Urban Logistics REIT plc.
Urban Logistics REIT will use the loan proceeds to refinance its recent acquisition of a portfolio of 14 logistics assets in various locations across the UK, totalling 1.1 million sq ft.
The seven-year interest only facility, provided at a fixed rate of 2.34% p.a., has been made on behalf of both internal and external client mandates managed by Aviva Investors, including the Aviva UK Life Annuity business.
The transaction includes a commitment from Urban Logistics REIT to work towards an agreed set of sustainability transition criteria, which will see it benefit from margin reductions upon meeting these targets across the loan assets. It follows the launch of Aviva Investors’ Sustainability-linked Loans framework in December as part of its commitment to originating £1 billion in sustainable transition real estate debt over the next four years.
Gregor Bamert, Head of Real Estate Debt at Aviva Investors, said:
“We are delighted to begin a lending relationship with Urban Logistics REIT, supporting its strategy to diversify – and extend – its debt profile. The urban logistics sector is underpinned by strong fundamentals and the sponsor’s specialist focus and active management, coupled with a modest leverage requirement, make this a compelling long-term proposition for our investor clients. We are also pleased to see a commitment from the business to enhancing the green credentials of its assets, as we continue to decarbonise our investment portfolio and support the UK’s wider climate transition programme.”
Christopher Turner, Executive Director at Urban Logistics REIT, said:
“We are delighted to have agreed a new debt facility with Aviva and we hope this relationship will continue to grow as we maintain our focus on building a unique platform of UK single let last touch logistics assets. The sustainable element is entirely in line with our drive towards adding ESG to the front of our investment policies. This new loan incorporates a £150m accordion element which will enable us to grow and strengthen this relationship”