Nationwide puts up £33m for M7’s and Europa’s LIPP

Nationwide’s commercial team has provided £33.2m of debt for Europa Capital’s and M7’s Real Estate Light Industrial Property Partnership joint venture. The five-year facility, at a 59% loan-to-value ratio, is secured against LIPP’s 10 UK industrial estates and will refinance £21.5m of debt with Westdeutsche ImmobilienBank, with £12m left for acquisitions. LIPP is already under offer on five assets.

The deal, led by Barry Worth, central London senior lending manager, is Nationwide’s first lending to LIPP, formed in 2009, but it has previously financed another joint venture between M7 and Westbrook Partners, called Northcreek. Worth said the deal appealed  because of “the main equity sponsor Europa Capital, highly rated asset manager M7, the granularity of risk and business plans for the assets”. Nationwide is prepared to lend for the first time to experienced investors on income-producing properties.