M&G writes first Dutch resi loan

M&G Investments has provided a €110m senior loan for a Dutch company’s acquisition of a €170m residential portfolio.

The loan is backed by 1,250 homes including an Amsterdam apartment complex and assets in Groningen, Heerenveen and Rotterdam, plus several commercial properties.

Paul Dittmann, M&G’s head of senior mortgages, said the majority of the loan was a fixed-rate facility, but it includes a floating element to give the borrower flexibility to sell assets.

The margin is thought to be between 175bps and 200bps. M&G has invested in UK residential and German multi-family housing debt, but this is its first Dutch loan.

“The quality of this portfolio is good and includes rent-controlled properties, which have security, and some ‘liberalised’ lets where there may be rent increases,” Dittmann said.

“The Dutch commercial and residential markets have had a difficult period and fundamental problems but there will always be relative value opportunities.”

Earlier this year M&G financed  the Jervis shopping centre in Dublin and Puerto Venecia mall in Zaragoza, Spain.