Aviva Investors provides additional £57 million in sustainable loans to Urban Logistics REIT plc

(London) – Aviva Investors, the global asset management business of Aviva plc, announces it has provided an additional £57 million in sustainable transition financing to Urban Logistics REIT plc. 

The new loan, a nine-year facility, is secured against a portfolio of ten logistics assets across the UK which together total more than 900,000 sq ft of space. It is the fifth such financing made since the two businesses established a lending relationship in March 2021.

The loan also includes a commitment from Urban Logistics REIT to undertake sustainability improvements across the ten assets being lent against, as well as 23 additional properties from previous tranches of financing that were not sustainability-linked. As a result, the entire lending programme between the two businesses is now aligned with Aviva Investors’ Sustainable Transition Loans framework, as well as Urban Logistics’ own ESG targets.

Launched in 2020, Aviva Investors’ Sustainable Transition Loans framework embeds measurable ESG commitments into loan terms for real estate borrowers to adhere to, in order to reduce carbon emissions from buildings being lent against. Originally committing to originate £1 billion in sustainable transition real estate debt by 2025, the programme surpassed its initial target in May 2022.

Gregor Bamert, Head of Real Estate Debt at Aviva Investors, said:

“We are happy to extend our lending programme with Urban Logistics through this new loan, but also to have brought everything under our sustainable transition loans framework, showing its commitment to continue enhancing the sustainability credentials of its assets. Despite relatively subdued activity in the lending market, this agreement shows that opportunities still exist to invest with established and high-quality borrowers. The REIT market’s asset management capabilities and focus on improving sustainability across its portfolio provides a solid foundation for growing lending activity with this sector.”

Richard Moffitt, CEO at Logistics Asset Management, said:

“In challenging economic times, we focus on our area of expertise: active asset management of single let, last mile logistics. To enable us to do this we have worked with Aviva Investors for a number of years, taking out competitively priced, fixed term debt, reducing the REIT’s exposure to interest rate volatility. This refinance allows us to do exactly this, moving the total debt book to an all in cost of 4.2%, 93% hedged or fixed to term, while the sustainability link further embeds our ESG targets across the business.”

For more information contact:

Steve Ainger

Head of Media Relations

James Morgan

Media Relations Manager

Important information

The information and opinions contained in this document are for use by the financial press and media only. No reliance may be placed for any purpose on the information or opinions contained in this document nor should they be seen as advice.

The press release is provided on the basis that Aviva Investors Global Services Limited is not causing the communication of a financial promotion under exemption of the Financial Promotion Order, as Aviva Investors Global Services Limited has no control over the way in which an article based on this press release is prepared and published by the financial press and media.

Except where stated as otherwise, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as 02 August 2023. Unless stated otherwise any views, opinions expressed are those of Aviva Investors. They should not be viewed as indicating any guarantee of return from an investment managed by Aviva Investors nor as advice of any nature. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.

Aviva Investors

Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 14 countries in Asia Pacific, Europe, North America and the United Kingdom with £223 billion in assets under management as at 31 December 2022.

Aviva Investors Global Services Limited

St Helen’s, 1 Undershaft, London, EC3P 3DQ

Phone          +44 (0)20 7809 6000

Fax                +44 (0)20 7489 7940

Web              www.avivainvestors.com

Email           info@avivainvestors.com


Issued by Aviva Investors Global Services Limited, registered in England No. 1151805.

Registered Office: St Helen’s, 1 Undershaft, London, EC3P 3DQ. Authorised and regulated by the Financial Conduct Authority and a member of the Investment Association.

Telephone calls may be recorded for training and monitoring purposes.