Nuveen Real Estate has financed an A$61.5 million ( US$38.8 million ) senior green loan to Asia-Pacific logistics real estate specialist Logos for the development of a 5 Green Star logistics warehouse in Melbourne, Australia. 

Once completed, the estate known as Reservoir Business Hub, will provide approximately 43,500 square metres of high-quality warehouse space, capable of hosting up to seven customers in an established infill logistics area, with good access to Melbourne’s freeways, central business district, port and airport. The hub will provide high-quality logistics units of generic design to cater for a cross section of customer requirements.

The project, the company points out, will also benefit from green accreditation and a range of innovative building facilities rarely seen in surrounding areas.

The loan is aligned to Nuveen’s Real Estate Debt strategy, which, the company says, focuses on core and core-plus loans to institutional borrowers with security over prime assets in preferred sectors, together with strict covenants to ensure principal protection for investors while earning attractive loan investment returns. It also aligns with the company’s commitment to making the global property portfolio it manages operationally net-zero carbon by 2040.

The development project is being managed by Logos on behalf of a partnership between Logos Group, KKR and Mubadala Investment Company.  

Dugald Marr, Nuveen’s managing director and head of debt for Australia and New Zealand, shares: “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,”