Aviva Investors supplies £57m sustainable transition loan to Urban Logistics Reit

Trust has committed to reducing carbon emissions on 10 logistics properties


Aviva Investors had provided a £57m sustainable loan to Urban Logistics Reit as part of the asset manager’s Sustainable Transition Loans framework.

The nine-year facility is secured against 10 logistics assets within the Urban Logistics Reit’s portfolio across the UK.

As part of the terms of the loan, the trust has committed to improving the sustainability of the 10 assets.

See also: Aviva Investors launches £1.5bn LTAF

Launched in 2020, the Aviva Investors’ Sustainable Transition Loans framework places ESG commitments into loan terms for real estate borrowers in order to reduce carbon emissions from the assets being lent against.

Gregor Bamert, head of real estate debt at Aviva Investors, said: “We are happy to extend our lending programme with Urban Logistics through this new loan, but also to have brought everything under our sustainable transition loans framework, showing its commitment to continue enhancing the sustainability credentials of its assets.

“Despite relatively subdued activity in the lending market, this agreement shows that opportunities still exist to invest with established and high quality borrowers. The Reit market’s asset management capabilities and focus on improving sustainability across its portfolio provides a solid foundation for growing lending activity with this sector.”

See also: Aviva Investors appoints multi-asset manager duo

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