RBC and Otera Capital act as Lenders on facility to develop a best-in-class UK logistics portfolio
Press release -
London November 28, 2023 - RBC Capital Markets (“RBC”) has arranged a five-year financing of St. Modwen’s development pipeline and subsequent stabilisation of its logistics properties in major hubs across the UK.
RBC arranges £525m hybrid development and investment debt facility
Once completed, the portfolio will offer 5 million square feet of modern logistics space, consisting of small, mid, and big box units. St. Modwen, one of the UK’s leading logistics owners and developers, was acquired in 2021 funds managed by Blackstone, the world’s largest alternative asset manager.
The investment debt facility was arranged by RBC, who also participated in the financing alongside Otera Capital (“Otera”) - the real estate lending unit of La Caisse de dépôt et placement du Québec (“CDPQ”) – also participated in the financing. The transaction marks Otera’s first real estate debt investment in the UK.
Gadi Jay, Senior Managing Director, Blackstone Real Estate Capital Markets said: “We are delighted to continue expanding our deep and longstanding relationship with RBC and are grateful for their ongoing support and partenership with our business. We are also pleased and grateful to have worked with Otera on their first European financing and look forward to doing more together in the future.”
Axel Brinkmann, European Head - Real Estate Capital Partners and Real Estate Corporate Banking for RBC said: “We are very pleased to continue to support our longstanding client Blackstone and the St. Modwen team on their journey to realize the potential of the St. Modwen Logistics business by delivering best-in-class, ESG-focused logistics space in a tightly supplied market. The hybrid and bespoke nature of the facilities reflects RBC’s ability to structure and execute innovative and market leading debt solutions which support our clients’ strategic aims. We are also delighted to partner with Otera, with whom we have a strong lending relationship in North America, on their first lending transaction in the UK market.”
Rana Ghorayeb, President and Chief Executive Officer at Otera said: “We are thrilled to have completed our first debt transaction in the UK, a strategic market which provides portfolio diversification. This transaction aligns well with our strategy of supporting our long-standing best-in-class relationships, such as Blackstone and RBC, as well as establishing a new relationship with St. Modwen on high conviction assets with a strong ESG focus in our targeted countries of Canada, the USA, and the UK. We see a solid alignment and a shared approach to risks with RBC's ability to structure and implement innovative and market-leading debt solutions.”
The Arranger and Lenders were advised by Allen & Overy LLP (John Coburn, Emma Perrin and Emma Willoughby) and Blackstone and St. Modwen were advised by Simpson, Thacher and Bartlett LLP (Tom Lloyd). CBRE Loan Services Limited acted as Facility Agent and Security Agent.
About RBC Capital Markets: RBC Capital Markets is recognized by the most significant corporations, institutional investors, asset managers, private equity firms, and governments around the globe as an innovative, trusted partner with an in-depth expertise in capital markets, banking, and finance.
We are well-established in the largest, most mature capital markets with over 6,600 employees across North America, Europe, and the Asia-Pacific region in 58 offices and 14 countries, collectively encompassing 82% of global investment banking activity each year and serving over 15,500 clients worldwide in over 100 countries.
For more information on RBC Capital Markets, visit rbccm.com
About Otera Capital: Otera Capital is an international institutional investor specializing in commercial real estate financing that cumulates over 50 years of experience in the industry. Otera leverages its expertise and vertically integrated teams to transform urban centres and create long-term value for its clients and partners. Headquartered in Montréal, with offices in Toronto and New York, Otera Capital manages a commercial loan portfolio of C$28.9 billion as of December 31, 2022. To learn more about Otera Capital, visit oteracapital.com.
For further information, please contact
Director, Corporate Communications RBC Capital Markets
Tel.: +44 (0)7912552421 [email protected]
Manager, Corporate Communications RBC Capital Markets
Tel.: +44 (0)7548 311208 [email protected]
Director, Communications and Marketing Otera Capital
Tel.: 514-847-5401 [email protected]