Trowers advises Urban Logistics on new £57.25 million sustainability linked investment loan
Trowers & Hamlins has advised Urban Logistics REIT Plc in securing a new £57.25 million sustainability linked investment loan from Aviva Investors.
The loan has been granted in the form of a supplementary tranche to an existing facility, using the incorporated accordion mechanism, which has now expanded to £267 million and is secured against the group's recent acquisition of a portfolio of 10 logistics real estate assets in various UK locations.
The new loan moves the all in debt rate for the company to 4.2 % with an arrangement whereby favourable margins can be unlocked by Urban Logistics should commitments to various environmental, social and governance standards be met.
The financing occurs against a backdrop of dynamic change in the logistics sector, driven by an accelerating trend towards sustainable practices. This has generated sustained interest and investment in the UK's robust and evolving industrial and logistics landscape.
Eddie O'Hanrahan, Banking and Finance Partner, said:
"We are proud to support Urban Logistics in yet another financing during a time of demonstrated resilience in the industrial and logistics market amidst a turbulent economy. It is a pleasure to continue to be a part of Urban Logistics and Aviva's sustainable financial practices."
Christopher Turner, an executive director of Urban Logistics REIT, commented:
“We are delighted to have worked again with the combined property and banking teams at Trowers to successfully complete this further extension of our facility with Aviva. Once again the professional but practical approach from our legal teams ensured a smooth and timely outcome."
The deal's success was a result of a combined effort from Trowers & Hamlins' Banking & Finance and Property teams. The Trowers team was led by Eddie O'Hanrahan, with assistance from Jonathan Grosvenor, Samer Almaz, and Isobel Moorhouse on banking aspects. Real estate expertise was provided by Ben Neary, with support from Phoebe Beardshall.