This article is from the Australian Property Journal archive
NUVEEN Real Estate has financed a $61.5 million Senior Green Loan to LOGOS for the development of a 5 Green Star logistics warehouse in Melbourne’s inner north.
Located at 21-35 Radford Road in Reservoir, the Reservoir Business Hub will span 43,500sqm of high-quality warehouse space got up to seven tenants in an this established infill logistics area.
“In recent years, we have had an increased interest in the industrial and logistics sector as driven by growing tenant demand for modern warehouse facilities, record low vacancy and limited supply,” said Dugald Marr, managing director and head of debt for Australia and New Zealand at Nuveen.
“As a result, we are delighted to be issuing Nuveen Real Estate Australia’s first green loan to a project that is supported by favourable market fundamentals, whilst marrying our focus on sustainability and the achievement of Green Star ratings.”
The hub will boast good access to Melbourne’s freeways, CBD, port and airport and will benefit from green accreditation and a range of innovative building facilities that will be rare for the surrounding areas.
“Nuveen has been a great partner in this project. We value their commerciality and structuring expertise, which has delivered an efficient debt structure for our investors. We look forward to exploring further opportunities with Nuveen, as we continue to grow our logistics portfolio in Australia and New Zealand,” said Wayne Thong, treasurer at LOGOS, Australia and New Zealand.
The loan is aligned to Nuveen’s real estate debt strategy which focuses on core loans and core plus loans to institutional borrowers with security over prime assets in preferred sectors and aligns with Nuveen’s commitment to seeing its global property portfolio operationally net zero carbon by 2040.
“The Nuveen Real Estate Debt team has the capability to structure bespoke financing solutions for Borrowers such as LOGOS and can move quickly to provide execution certainty where we have high conviction on the project and sector,” added Marr.
The development project is being managed by LOGOS on behalf of a partnership between LOGOS Group, KKR, and Mubadala Investment Company.