LONDON, Nov. 16, 2016 – PGIM Real Estate Finance has provided a £75.6 million ($92 million) loan to the investors who acquired the Bardon Logistics Facility, the mammoth new warehouse developed by Mountpark, to serve as Amazon UK’s newest fulfillment center. PGIM Real Estate Finance, among the largest commercial mortgage lenders in the United States, is a business of PGIM, the global investment management businesses of U.S.-based Prudential Financial, Inc., (NYSE: PRU).
The five-year loan to a group of South Korean real estate investors helped to finance the 98,450-square-meter (1,059,700 square-foot) warehouse and supports Amazon’s expansion within the U.K. Bardon Logistics sits within the Midlands Region’s Golden Triangle in Bardon, Leicestershire, widely considered one of the strongest performing and most desirable logistics areas in the region. BNP Paribas Real Estate with BNP Paribas REIM arranged the transaction.
This fulfillment center is expected to provide the online retailer with access to major highways and transportation hubs, putting more than 90 percent of the nation’s population within a four-hour drive.
“We’re pleased to provide financing for this property as we continue to expand throughout the U.K. and Europe. It’s particularly exciting to participate in the evolution of online retail delivery in an increasingly fast-paced world,” said Bryan McDonnell, a principal with PGIM Real Estate Finance and head of the U.K. office. “Our ability to finance high-quality opportunities like this one gives us a unique opportunity to support investors who are navigating uncertain market conditions, particularly as global interest rates remain low and the impact of Brexit unfolds.”
“Several factors made this an attractive transaction for us, including the strength of the borrower and the long-term prospects for the tenant, Amazon,” said Aaron Knight, a director with PGIM Real Estate Finance’s London office who led the debt transaction. “The property’s location in one of the most strategically important logistics regions of the country added to the loan’s appeal. This is the kind of transaction we hope to replicate.”
David Barry, head of Debt Advisory at BNP Paribas Real Estate, said: “We are pleased to have orchestrated the largest ever acquisition for a single-let logistics warehouse in the history of the U.K., demonstrating the strength and breadth of our offer to investors, whilst matching their requirements in terms of its location, build quality and occupier covenant, in what is an increasingly exciting sector of the UK.. real estate market. We were able to secure finance for our client from PGIM Real Estate Finance on competitive terms which matched our investors business plan.”
Situated on 49 acres, the property is one of the larger logistics facilities in the U.K. It contains 86 dock high doors and two ground level loading doors. There is space to park 225 trucks and 709 cars.
About PGIM Real Estate Finance, Inc.
PGIM Real Estate Finance, Inc. is a trade name of The Prudential Insurance Company of America, a wholly owned subsidiary of the U.S. financial services firm Prudential Financial, Inc. (NYSE: PRU). PGIM Real Estate Finance’s investments in commercial mortgage loans are managed by the real estate finance business of PGIM. This PGIM unit is an international full-service, commercial and multifamily mortgage finance business with more than US$89.71 billion in assets under management and administration as of September 30, 2016. Leveraging a 140-year history of real estate finance, the real estate finance business of PGIM offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac Program Plus® and specialized affordable housing programs; FHA; Conduit; PGIM Real Estate Finance’s general account; and other institutional investors. The real estate finance business of PGIM maintains a loan servicing portfolio of approximately US$87.1 billion as of September 30, 2016. For more information about the real estate finance business of PGIM, please visit http://www.prumortgagecapital.com.
PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 16 countries across five continents and had more than $1 trillion in assets under management as of September 30, 2016. For more information, please visit http://www.pgim.com.
About Prudential Financial, Inc.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2016, has operations in the United States, Asia, Europe and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, a company headquartered in the United Kingdom. For more information, please visit www.news.prudential.com.
16 November 2016
PGIM Real Estate Finance provides £75.6 million for new Amazon UK fulfillment center project
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