A £105m refinance deal has been agreed for a portfolio of UK logistics properties.
Aviva Investors, the global asset management business of Aviva, has provided £105m of refinancing to South African specialist industrial REIT Equites Property Fund, secured against a portfolio of five regional distribution assets across the UK.
As part of the agreement, Aviva Investors has increased its existing facility with Equites, which completed in December 2019, and extended the loan term to 2032.
The funding will be used by Equites to refinance the development of Colossus, a 340,000 sq ft distribution hub near Barnsley, for multinational delivery company Evri.
Parcel delivery giant Evri, formerly Hermes UK, has pledged to create about 1,400 jobs at the new Barnsley facility.
Gregor Bamert, head of real estate debt at Aviva Investors, said: “Against a backdrop of changing dynamics, the close cooperation between Equites and its tenants together with the high quality of its portfolio, provide an attractive financing opportunity. We are delighted to continue to support Equites and the growth of its UK portfolio.”
Warren Douglas, treasurer and head of risk management at Equites Property Fund, added: “Having received strong support from Aviva Investors for many years, Equites welcomed the opportunity to refinance for a further ten years in a challenging economic environment, thereby enabling us to expand our portfolio of high-quality logistics assets in the UK and continue to deliver long-term sustainable shareholder value as we maintain our goal to become a globally relevant REIT.”
The investment was made on behalf of Aviva UK Life’s annuity business.
