(London) – Aviva Investors, the global asset management business of Aviva plc (‘Aviva’), announces it has completed an additional £40 million sustainability-linked financing agreement with Urban Logistics REIT, the main market listed investment company which invests in mid-sized urban logistics buildings up to 200,000 sq ft.
It is the second facility Aviva Investors has provided to Urban Logistics REIT and follows an initial £48 million sustainability-linked financing agreement between the two businesses which completed in March 2021 which included margin reductions should Urban Logistics REIT meet an agreed set of sustainability transition criteria.
Similar to the first agreement between the firms, the latest facility is aligned with Aviva Investors’ Sustainable Transition Loans framework, launched in December 2020, and will see interest rate reductions upon meeting environmental-linked targets across the buildings the loan is secured against.
Urban Logistics REIT will use proceeds of the seven-year interest only facility, fixed at 2.26 per cent per annum, to refinance its recent acquisition of a portfolio of 13 logistics assets across the UK, totalling 1.2 million sq ft.
It has been made on behalf of both internal and external client mandates managed by Aviva Investors, including the Aviva UK Life annuity business.
Gregor Bamert, Head of Real Estate Debt at Aviva Investors, said:
“We are delighted to build on the relationship with Urban Logistics REIT, and to further extend our sustainable transition loans programme which forms one of the five interim goals we have set ourselves in order to reach net zero across the entirety of our Real Assets business by 2040. Urban Logistics has demonstrated excellent asset management including a number of value-add initiatives across the portfolio since the original lending in March. As part of this new lending, we are also pleased to see a strengthened commitment from the business to enhancing the green credentials of its assets, which aligns well with our own decarbonisation programme.”
Christopher Turner, Property Director, Urban Logistics REIT, said:
“We are delighted to have drawn down further on our debt facility with Aviva Investors, and we hope this relationship will continue to grow as we maintain our focus on building our portfolio of high quality, single let, “last mile / last touch” logistics assets. The inclusion of margin reduction linked to sustainability targets aligns perfectly with our ESG goals, and our commitments to investors.”
