Valor and QuadReal have secured a £79m senior loan from PGIM Real Estate for their recent Tesco distribution centre acquisition

Green Street News

Valor and QuadReal secure £79m loan for Tesco warehouse deal

7 March 2025

PGIM Real Estate provided senior loan for the £130m acquisition.

  • What Valor and QuadReal have secured a £79m senior loan from PGIM Real Estate for their recent Tesco distribution centre acquisition
  • Why Key warehouse site reaches around 11.4m people within a 60-minute drive
  • What next UK last-mile logistics remains robust in prime locations, underpinned by solid market tailwinds

Valor Real Estate Partners and QuadReal Property Group have secured a £79m investment financing from PGIM Real Estate for their recent £130m acquisition of a Tesco-let distribution centre in Essex, Green Street News can reveal.

The financing from PGIM Real Estate is on behalf of its senior debt platform. The fixed-rate facility marks the fifth transaction between Valor and PGIM Real Estate.

The 630,000 sq ft distribution centre, situated within Dolphin Park, serves as a key hub for Tesco’s food supply chain, supporting approximately 550 stores across London and the South East. The asset has good connectivity with the M25, A13, and major ports at Tilbury and London Gateway.

Demand for UK last-mile logistics remains robust in prime locations, underpinned by the continued growth of e-commerce and urbanisation. Across major port and core distribution markets such as London, the outlook for rental growth remains strong.

Miles Muthu, vice president of Valor Real Estate Partners, said:

“The asset’s prime location and essential role in Tesco’s supply chain make this an attractive long-term investment. Valor’s technical expertise and speed of execution were instrumental in securing both the acquisition and financing for the Tesco Purfleet distribution centre, underlining our ability to navigate complex transactions efficiently.”

James Mathias, senior portfolio manager for European core debt at PGIM, added:

“The recovery in European real estate is under way, supporting conditions for the growth of income-focused debt investment. We remain confident in the outlook for the London Gateway, with demand for UK logistics that remains robust in light of the long-term structural tailwinds of e-commerce and emerging industries like green energy supporting leasing activity.”