PGIM Real Estate Secures £79 Million Loan for Tesco Centre Acquisition
Deal News | Mar 12, 2025 | Mishcon
Mishcon de Reya has successfully advised PGIM Real Estate on a sizeable £79 million senior loan to finance Valor Real Estate Partners and QuadReal Property Group's acquisition of a Tesco-let regional distribution centre in Purfleet, Essex. The acquisition underscores the growing demand for strategically located logistics hubs as online retail continues to reshape distribution networks. The Purfleet centre's strategic positioning connects vital transport arteries, reinforcing its role in Tesco’s supply operations to over 550 stores across London and the South East. The deal marks another fruitful collaboration between PGIM Real Estate and Valor, with Mishcon de Reya's Real Estate Finance team, led by Partner Nick Strutt and supported by experts including Daniel Lipman, showcasing their prominence in property finance law. This transaction highlights the resiliency and attractiveness of UK logistics assets as premier investment classes.
Sectors
- Real Estate
- Logistics
- Finance
Geography
- United Kingdom – The transaction involves a distribution centre located in Purfleet, Essex serving London and the South East, and is part of the broader UK logistics market.
Industry
- Real Estate – The article discusses real estate financing and acquisition of a distribution centre, highlighting activities within the Real Estate sector.
- Logistics – The acquisition of the Tesco-let distribution centre in Essex is a key logistics asset contributing to the supply chain sector of the economy.
- Finance – Involves the financial structuring and loan provision facilitated by Mishcon de Reya’s Real Estate Finance team.
Financials
- £79 million – Senior loan provided for the financing of the distribution centre acquisition.
- £130 million – Total acquisition cost of the Tesco-let distribution centre.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Mishcon de Reya | Legal Advisor | Company | A London-based law firm advising on the £79 million financing deal for PGIM Real Estate in the acquisition of a Tesco-let distribution centre. |
| PGIM Real Estate | Lender | Company | A global real estate finance company providing a £79 million loan for the distribution centre's acquisition. |
| Valor Real Estate Partners | Acquirer | Company | Alongside QuadReal Property Group, Valor is acquiring the Tesco-let distribution centre as part of a larger acquisition strategy. |
| QuadReal Property Group | Acquirer | Company | Partnered with Valor Real Estate Partners in the acquisition. |
| Tesco | Tenant | Company | The distribution centre is let to Tesco, a major grocery and general merchandise retailer in the UK. |
| Simmons & Simmons | Legal Advisor | Company | Worked alongside PGIM and Valor as legal advisors in the transaction. |