BGO and Apollo complete major UK logistics financing
London, UK (September 25, 2024) – Apollo and BGO, a leading global real estate investment manager, have closed a c. £390m loan agreement on a portfolio of UK logistics assets on behalf of its European value add strategy.
The loan is secured against a mix of built and development projects comprising a total of c. 4.25m sq. ft. of high-quality logistics assets targeting BREEAM outstanding credentials. The loan funds the immediate commencement of 1.25m sq. ft. of speculative development across four sites. Those sites include Matrix 49, Bristol and Vanguard Logistics Park, Longmoor where BGO looks to take advantage of the continued supply and demand imbalance across the UK logistics market, particularly for brand new, high-sustainability assets in core logistics locations.
The portfolio includes Orwell Logistics Park, where BGO and their development partners, Equation Properties, have just signed a c. 1.1m sq. ft. lease with Sizewell C Limited.
Gareth Purcell, Managing Partner at BGO said “BGO are delighted to have closed this large financing with the excellent team at Apollo. We are big believers in the UK logistics market and have seen an uptick in tenant enquiries for our sites in the last few months. Commencing construction on four further projects with best-in-class credentials including BREEAM Outstanding ratings continues our broader focus on delivering high quality logistics space into under-supplied markets across Europe where tenant demand continues to be robust.”
Ben Eppley, Partner and Head of European RE Credit said “Apollo is pleased to finance this high-quality logistics portfolio backed by a sophisticated sponsor in BGO. We continue to find attractive deployment opportunities across real estate credit in the UK and Europe, and see strong secular demand for logistics properties and projects in particular.”
About BGO
BGO is a leading, global real estate investment management advisor and a globally-recognized provider of real estate services. BGO serves the interests of more than 750 institutional clients with approximately $83 billion USD of assets under management (as of June 30, 2024) and expertise in the asset management of office, industrial, multi-residential, retail and hospitality property across the globe. BGO has offices in 27 cities across thirteen countries with deep, local knowledge, experience, and extensive networks in the regions where we invest in and manage real estate assets on behalf of our clients in primary, secondary and co-investment markets. BGO is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life.
In Europe, BGO is a leading investment manager with over 50 professionals and $10.5 billion USD in AUM across debt and equity, with strategies spanning from Core to Value-Add and Development, with its own internalised operating capability. Since 2014, the firm has acquired, developed or is currently developing over 200 European logistics assets comprising over 66 million square feet (6.1m sq. m.).
The assets under management shown above includes real estate equity and mortgage investments managed by the BGO group of companies and their affiliates, and as of 1Q21, includes certain uncalled capital commitments for discretionary capital until they are legally expired and excludes certain uncalled capital commitments where the investor has complete discretion over investment.
For more information, please visit www.bgo.com
Media Contacts
Rahim Ladha
Global Head of Communications, BGO
media@bgo.com
