Real estate and last-mile specialist Valor and QuadReal Property Group have secured £79m in finance to help acquire a Tesco-let distribution centre in Purfleet.
The 630,000sq ft distribution centre, situated within Dolphin Park, acts as a critical hub for Tesco’s food supply chain and supports approximately 550 stores across London and the south-east.
The facility handles significant distribution volumes with 800 truck movements per day and is situated close to the M25, A13, and ports at Tilbury and London Gateway.
Valor said demand for UK last-mile logistics was robust in prime locations, underpinned by growth in e-commerce and urbanisation.
It added that across major port and core distribution markets such as London, the outlook for rental growth remains strong.
Miles Muthu, VP at Valor Real Estate Partners, said: “The asset’s prime location and essential role in Tesco’s supply chain make this an attractive long-term investment.
“Valor’s technical expertise and speed of execution were instrumental in securing both the acquisition and financing for the Tesco Purfleet distribution centre, underlining our ability to navigate complex transactions efficiently.”
The investment financing was provided by PGIM Real Estate.
