Lloyds Bank Commercial Banking, through its partnership with insurer Scottish Widows, has provided a £40 million financing to specialist industrial REIT A&J Mucklow.
The loan has been written for 15 years at a secured fixed rate of 3.5 percent. It will provide A&J Mucklow with a £20 million war chest for new acquisitions and development projects, with the remaining £20 million to repay an existing facility from Lloyds.
The facility is secured against 15 mainly industrial assets from across the UK’s midlands, including a Costco wholesale warehouse in Coventry and Apex Park in Worcester let to Worcester Bosch Group.
Through Lloyds’ partnership with its group insurance firm, Scottish Widows, the bank originates loans of more than 10 years on the insurers’ behalf.
A&J Mucklow is the Midlands’ largest listed investment property company. It was established in 1933 and first floated on the London Stock Exchange in 1962. The firm has banked with Lloyds since 2008, with more than £60 million in funding now arranged by the bank.
“Being able to access long-dated funding through our existing relationship with the team at Lloyds Bank was key to this agreement,” said David Wooldridge, finance director at A& J Mucklow.
“We make investment decisions to create enduring and long-term returns for our shareholders. This debt package will enable us to do this through the flexibility to better manage risk and seize opportunities over a significant period,” he added.
“Mucklow is one of the UK’s most successful and longest running listed property companies, which we admire for its enduring ability to invest in and develop high quality assets,” said Richard Round, relationship director at Lloyds Bank Commercial Real Estate.