Aviva Investors has agreed to provide £32m in green loan financing towards the development of a new logistics unit in Enfield, North London.
The facility been made through Aviva Investors’ multi-sector private debt long-term asset fund (LTAF), which launched last year.
Aviva Investor’s LTAF is designed for DC pension funds looking for access to a diversified portfolio of investments, including opportunities in real estate debt, infrastructure debt, structured finance and private corporate debt.
The development in Enfield is being brought forward by Valor Real Estate partners, a pan-European real estate investment and asset management firm focused on the logistics sector.
“We are pleased to complete this financing and extend our relationship with Valor, a sponsor with a strong track record in the logistics sector,” director, real estate debt at Aviva Investors, Nick Solomon, commented.
“The scheme is located in an established and strategically important location with high demand for modern high-quality units. We believe this positions it well to deliver- long-term outcomes for investors.
“This is another example of how we can help the real estate sector get ready for the future, by supporting the creation of highly energy-efficient assets with strong credentials, along with our ability to provide investors with access to a broad range of opportunities in private debt.”
When complete, the proposed scheme is expected to deliver a single unit providing 110,000 sq ft of Grade A urban logistics warehouse space.
Vice president, capital markets at Valor, Miles Muthu, said: “We are very pleased to secure this financing from Aviva to deliver a best in-class, sustainable urban logistics facility in one of London’s prime sub-markets.
“This commitment further underlines the attractiveness of last-mile logistics for institutional investors, with e-commerce and urbanisation continuing to underpin occupational demand and land availability in urban areas limiting future supply.”