The five-year investment loan with a less than 50% LTV, referenced off gilts, represents the first transaction between the two parties.

The loan is secured against five recently acquired urban infill logistics properties, all located in high demand, critically undersupplied inner London submarkets.

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The properties are:

• two previously vacant units on Gemini Business Park in Beckton, East London, where Valor has completed a sustainability-led refurbishment programme
• a 21,600 sq ft property in Wandsworth, South West London, acquired from a private landlord and leased to Phase Eight — a womenswear company
• four modern distribution assets on the Tera 40 industrial estate Greenford, acquired in August and totalling 341,000 sq ft, which are fully-let to Tesco, Palletways, Royal Mail and Micheldever
• a 31,000 sq ft, single property estate in Canning Town, East London, comprising four units which are ideally configured for last-mile logistics operators
• a 112,000 sq ft multi-let estate located in Mitcham, South London, which Valor recently completed a significant refurbishment of the vacant unit, increasing the yard area by 20%

Matthew Phillips, partner and head of finance and operations at Valor, commented: “This first transaction with Canada Life Asset Management adds another established global institution to our pool of lending partners.

“The competitive terms are an endorsement of our strategy which is focused on value-add opportunities and asset mispricing in critically undersupplied submarkets, where evolving consumer trends are driving demand from a range of occupiers.

“We continue to grow the platform and build relationships with lenders in the UK and in our other core European markets.”

Nicholas Bent, head of real estate finance, Canada Life Asset Management, added: “We are pleased to initiate a new lending relationship with Valor.

“This facility demonstrates Canada Life’s ability to secure best in-class sponsors by providing competitive, flexible terms and meeting ambitious target completion timeframes.

“This sub-50% LTV loan is secured by a portfolio of London logistics assets, a sector underpinned by very strong demand and supply dynamics.

“We look forward to building the relationship with Valor further as they continue to invest in the UK and Europe.”