The Colliers Debt Advisory team has advised Realterm on behalf of its Realterm Europe Logistics Fund, on a c.£31 million senior loan facility secured against its maiden UK investments, comprising two transportation-advantaged logistics buildings in the Midlands and North-West.
The facility was designed to provide post-acquisition refinance and to support the refurbishment of two “high flow-through” last mile logistics sheds. The assets in Hardwick Grange Industrial Estate, Warrington, and Long Eaton, Nottingham, provide 257,319 sq ft and 261,904 sq ft of space respectively. The comprehensive refurbishments have been completed at Long Eaton and have started at Warrington, with the warehouses available to let through the Colliers Industrial & Logistics team.
Laurence Richardson, director in the Debt Advisory team at Colliers, comments: “Following an extensive market search, we secured a funding partner who not only provided post-acquisition finance for the original purchase but was also able to underwrite Realterm’s operational capabilities to offer a highly competitive development capex line to support the extensive refurbishment programme.”
“Negotiating the finer details of the facility during the market volatility of late 2022 added an additional challenge, but the robustness of the sponsor’s investment thesis and pragmatism of all parties ensured that the transaction was concluded successfully.”
Colby Pan, Associate Vice President, Capital Markets, Realterm says: “We’re thrilled to complete our first financing in the UK including a significant capital expenditure facility, post-acquisition of two highly functional transportation-advantaged assets with high flow-through operational characteristics. With this financing, we have also established a new funding relationship with a respected lender. Colliers supported us with sourcing this loan during volatile market conditions and provided a number of viable options.”
Balazs Lados Managing Director, Realterm Europe Logistics Fund adds: “We will continue our expansion of our Realterm platform into Europe, where we’ll be exclusively investing in transportation-advantaged properties in the UK and in Europe and leveraging our 30+ years of global expertise in this area.”
