M&G Investments has provided £238m of whole loan refinancing for Midlands and North of England investor and developer Northern Trust.
The five-year facility is secured against Northern Trust’s £360m-plus portfolio of industrial, trade and office parks, comprising over 3,600 individual units, and its circa 1,700 acre land bank. Most of the assets are let to small and medium sized UK businesses, meaning the portfolio is underpinned by numerous and well-diversified income streams.
M&G was impressed by the sponsor’s track record of maintaining occupancy across the portfolio and liked the business-nature use of the properties as it meant providing capital to “some of the engines of local economies”, according to John Barakat, head of real estate finance at M&G Investments.
He said: “We’re pleased to be able to tell people we’re not just central London-based lenders; we’re also lending in the regions as well as continental Europe”.
M&G will hold the entire loan within its funds. It has three real estate debt funds – a senior fund, a £750m stretched senior fund and a £605m mezzanine fund, as well as several segregated mandates.
The financing takes total lending by M&G’s Real Estate Finance team (part of M&G Investments) to about £1bn across seven deals in the European office, retail and leisure sectors this year. These include debt it provided against the Jervis Shopping Centre in Dublin, the Puerto Venecia shopping centre in Spain’s Zaragoza, and a €110 senior loan for the largest acquisition of Dutch residential property since 2008.