M&G launches into £70m Rocket financing

M&G Investments has provided a £70 million (€81 million) whole loan to private property advisory and investment management company Rocket Investments, secured by a London hotel.

The five-year loan finances a Premier Inn hotel at 10 East Road in the Shoreditch area of the UK capital. The former print work office building was redeveloped in 2011 into a 251-bedroom hotel. Premier Inn operates the asset on a 20-year lease.

In a company announcement, Dan Riches, director for real estate finance at M&G, noted that the long lease with Premier Inn and the development’s central London location made it an attractive investment. The entire whole loan will be invested and held by M&G fund, he also noted in the announcement.

“Institutional investors are interested in commercial mortgages as an attractive alternative to bonds as it offers a good relative value for secured risk,” said Riches.

In February, M&G provided an £85 million (€98 million) financing for UK-based housing association One Housing. The 35-year loan will funds the development of 1,050 homes by 2020.