Centrus advises Magnavale on new financing

Company Overview

Founded in 2011 by Sadel Group, Magnavale owns and operates an integrated network of ‘Grade A’ cold storage facilities in key locations and within close proximity of blue-chip food companies.

Magnavale is the leading independent platform for temperature-controlled storage and value-added services -#2 in the UK and #5 in Europe (Pro Forma):

  • 314,000 total pallet capacity 
  • 78 million cubic sq. ft storage volume (including expansion and new development)

The company is well-positioned for embedded growth in its existing network as well as development of new automated facilities.

Transaction Overview

The UK’s leading pure-play temperature-controlled warehousing platform Magnavale, has secured a new £280m financing package.

The new debt is provided by banks and institutional lenders for a five-year period including extension options.

The new financing will be utilised to refinance existing debt and fund the growth pipeline including the fully-automated development at Easton.

Centrus’ Added Value

  • Strategic advice on partnership and financing options, leveraging Centrus’ knowledge base and experience of real estate banking & broader capital markets.
  • Utilised a network of relationships to drive competitive tension, leading and supporting with negotiations.
  • Assessment of appropriate hedging structures resulting in a deal-contingent interest rate swap being entered into that mitigated the risk of rising rates in a volatile market.
  • Dedicated support throughout the transaction to enable smooth execution and drive optimal result.
  • Introduced new institutional lending relationships that will enable the ambitious growth plans of the business.

We are pleased to have successfully closed this financing despite the challenging market backdrop. This transaction is a testament to robust sector fundamentals and secular demand for cold storage. We have a high conviction in this sector, and given limited new fit-for-purpose supply, we are well-positioned to benefit from new market opportunities and deliver long-term growth for our platform.”

Andrew Lawrence, Director – Sadel Group

We are delighted to have supported Magnavale on this financing. It will enable the development of best-in-class, mission-critical warehouses to ensure security of food supply and future-proof the food supply chain. We are sincerely thankful to Magnavale’s leadership for placing their trust in us to assist on this strategic transaction and look forward to our next assignment together.

Omer Fazal, Senior Director – Centrus

For more information, please contact Omer Fazal.

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