PGIM Real Estate increases loan to Valor-QuadReal UK logistics JV

Global real estate investor PGIM Real Estate has increased its loan to the Valor Real Estate and QuadReal Property Group logistics joint venture by £40 mln (€46 mln).

Quadreal - logistics

This brings its total commitment for a portfolio of five UK logistics assets to £119 mln (€137 mln).
This latest floating-rate loan, PGIM's sixth with Valor, will fund the acquisition of four last-mile properties in London and Birmingham. This adds to the initial £79 mln (€91 mln) provided in January 2025 for a large 58,529 m2 Tesco distribution centre in Essex.
The four new assets total 23,690 m2 and include three small box warehouses in strategic London logistics hubs (Poplar, Enfield, Staines) and a light industrial estate near Birmingham city centre. Valor plans to enhance these vacant units by improving functionality and energy efficiency. The expanded portfolio, leased to a diverse mix of tenants, now boasts a 93% occupancy rate.
The Tesco distribution centre in Thurrock, acquired for £130 mln (€149 mln) in January 2025, was notably the UK's largest single-transaction logistics deal since 2022 and the largest single-asset transaction within the £4 bn (€4.6 bn) Valor-QuadReal joint venture.
James Day, VP, European Senior Debt Origination, PGIM Real Estate, said: “This transaction builds on our longstanding relationship with Valor and Quadreal, and we’re pleased to continue our support of the joint venture. The additional financing reflects our confidence in the strategy and the strength of the UK logistics market, which remains a resilient sector underpinned by strong fundamentals and occupier demand.”
Miles Muthu, VP Capital Markets, Valor Real Estate Partners, commented: “This latest financing further strengthens our relationship with PGIM. Their continued support underscores the quality of our partnership and the strength of the portfolio we are assembling with QuadReal. These assets, located in key urban logistics markets, provide the diversification and resilience we target across the UK. Valor remains highly active in the market and we are keen to continue deploying capital into the right opportunities as demand for modern, strategically located logistics space remains strong and is expected to grow in these undersupplied submarkets.”
Thomas Blangy, Senior Vice President at QuadReal, added: “This transaction reflects the strength and quality of the portfolio we have built with Valor, and represents a vote of confidence in our approach. With increasing demand and limited supply, logistics remains a high conviction sector for QuadReal, and the acquisition of these four assets is firmly in line with our global investment strategy of targeting high growth urban logistics hubs in key markets across Europe and the UK.”