The new loan — a nine-year facility — is secured against a portfolio of 10 logistics assets across the UK, which together total more than 900,000 sq ft of space.

It is the fifth deal between the two businesses since March 2021.

The facility also includes a commitment from Urban Logistics to undertake sustainability improvements across the 10 assets being lent against, as well as 23 additional properties from previous tranches of financing that were not sustainability-linked.

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Gregor Bamert, head of real estate debt at Aviva Investors (pictured above), 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.”

Richard Moffitt, CEO at Urban Logistics, added: “In challenging economic times we focus on our area of expertise: active asset management of single let last mile logistics.

“To enable us to do this we have worked with Aviva Investors for a number of years taking out competitively priced fixed-term debt.

“This refinance allows us to do exactly this while the sustainability link further embeds our ESG targets across the business.”