Wells Fargo and LaSalle provide GBP67m to Blackstone for UK properties
Wells Fargo has provided GBP54.3m (USD85m) in financing to Blackstone for the acquisition of seven distribution warehouses in core markets across the UK, including the Midlands, North West and Yorkshire.
In addition, LaSalle Investment Management’s debt investments team provided GBP13.0m (USD20.3m) in mezzanine financing to support the acquisition.
“Wells Fargo is excited to partner with Blackstone on this project,” says Chip Fedalen, head of Wells Fargo Commercial Real Estate’s institutional and metro markets group. “We have a strong commitment to helping our customers succeed financially, and through the development of our relationship with Blackstone over the past 20 years, we felt this project was well-suited for them as the company continues expanding its industrial footprint in the UK We look forward to seeing the successes of these properties and continuing the growth of our commercial real estate business in the UK”
Amy Aznar, head of debt Investments at LaSalle Investment Management, says: “This represents our team’s twelfth mezzanine loan provided in the last twelve months and third with Blackstone in the UK logistics space. We are delighted to work with Blackstone and Wells Fargo again and look forward to growing our relationship with both in the coming year.”
Wells Fargo previously supported Blackstone in financing its acquisition of the Triangle portfolio, which included 17 logistic properties in the UK, while LaSalle’s debt team has supported Blackstone in providing over GBP120m (USD182m) of mezzanine financing for various logistics acquisitions (including Triangle) since early 2012.
Of the seven distribution warehouses for this project, three are located in the Midlands, three in the North West, and one in Yorkshire. Six of the seven properties have been leased to well-known tenants in the UK, while the seventh is currently vacant and being refurbished by Blackstone.