Pbb has agreed to provide a €147m (£126m) loan to Prologis UK Logistics Venture, the £1bn joint venture between Prologis and CBRE Global Investment Partners.
Proceeds from the loan will be used to refinance three logistics distribution centres and to finance the development of four new ones throughout the UK.
The jv, announced last week, included 3.9m sq ft in existing UK logistics property with a pipeline to add a further 3.7m sq ft.
Prologis retained a 15% stake in the portfolio and will undertake the development and management of the assets. CBRE GIP took on the remaining 85%. It is Prologis’s first vehicle dedicated solely to the UK.
Charles Balch, head of real estate finance international, UK and CEE at pbb, said: “This opportunity allowed us to bring our structuring skills to bear on a combined investment and development facility in a growth sector of the UK real estate market which is very attractive for institutional investors.
“The transaction is an indicative of the continued strong performance of the UK logistics sector.”
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