Valor and QuadReal Secure £79m Financing for Tesco Distribution Hub Acquisition

Valor Real Estate Partners and QuadReal Property Group have successfully secured a £79m loan from PGIM Real Estate to support their recent acquisition of a Tesco-let distribution centre in Purfleet, Essex.

The 630,000 sq ft facility at Dolphin Park, purchased for £130m in January, plays a crucial role in Tesco’s supply chain, serving approximately 550 stores across London and the South East. The transaction marks the largest single-asset acquisition to date for the Valor and QuadReal joint venture and represents the biggest single-let, last-mile logistics deal in the UK since 2022.

The financing, provided through PGIM’s senior debt platform, is the fifth collaboration between the lender and Valor. Demand for UK last-mile logistics assets remains strong, driven by the continued expansion of ecommerce and urbanisation trends.

James Mathias, senior portfolio manager for European core debt at PGIM, commented: “The recovery in European real estate is progressing well, creating favourable conditions for income-focused debt investment. We remain optimistic about the London Gateway and the resilience of UK logistics, buoyed by long-term structural drivers such as ecommerce and the rise of green energy industries.”

Thomas Blangy, senior vice-president at QuadReal, added: “This investment aligns perfectly with our global strategy of targeting high-growth urban logistics hubs, particularly in key UK markets. Partnering with Valor and PGIM Real Estate to acquire this Tesco-let distribution centre further strengthens our position in this high-performing sector.”

Miles Muthu, vice-president at Valor Real Estate Partners, also highlighted the asset’s strategic importance: “Its prime location and integral role in Tesco’s supply chain make this a compelling long-term investment.”

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