QuadReal and Valor refinance French urban logistics portfolio

QuadReal and Valor Real Estate Partners have refinanced a five-property urban logistics portfolio in Paris and Lyon, France, securing a €105 mln loan from Deutsche Pfandbriefbank AG (pbb). 

Logistics

This three-year senior facility replaces a previous €105 mln loan from pbb secured in 2022 against a six-asset portfolio; one property was sold in 2024, yielding a strong 30+% internal rate of return.
The portfolio now comprises approximately 80,000 m2 of high-quality, last-mile logistics space in key urban areas. 
Valor acquired the properties off-market between 2021 and 2022 and has since enhanced their value through extensive ESG-focused renovations and a proactive leasing strategy. A key feature of the portfolio is its strong ESG performance, with over 80% of the assets expected to achieve an EPC A rating.
Currently 81% leased with a weighted average lease term of 7.0 years, the portfolio offers further potential for rental growth. Full stabilization is anticipated in the second half of 2025 once the remaining four units are leased.
Miles Muthu, VP of Capital Markets at Valor, commented: “We have executed our original business plan as intended. Five of the six originally financed assets have been fully refurbished, and we’ve subsequently achieved significant rental uplifts ahead of our initial underwriting, reaching €200 per m2 on some units. The Limeil exit crystallised strong returns, and we are now focused on maximising value across the retained portfolio.”
Olivier Katan, head of REF France, at pbb, added: “This transaction not only provided an opportunity to work with the Valor teams once again, but also illustrates our commitment to supporting our clients in improving the energy performance of their assets, thanks to our institutions proven expertise in financing accretive capex for all types of assets.”
Thomas Blangy, senior VP at QuadReal, said: “The success of this refinancing is testament to the attractiveness and quality of these assets. Alongside Valor, we have built a robust portfolio of best-in-class industrial and logistics assets across Europe and the UK, with France representing a key area of strength, in line with our global investment strategy of targeting high-growth urban logistics hubs in key markets.”