Cornerstone hits £250m first-year UK lending target

Cornerstone Real Estate Advisers has just managed to make its target to lend around £250m in its first year as a senior lender in the UK market.

The investment manager has completed a £150m senior debt package for UK & European Investments, secured on a six-strong portfolio.

It is thought that the assets, in central London and the south east, were previously largely debt-free.

The deal is Cornerstone’s second and was arranged by UK commercial mortgage investment manager Laxfield Capital.

The facility provides fixed- rate, nine- and 11-year mixed maturities priced over gilts.

Barnaby Kelham, UK & European’s chief executive, said the capital would be used to expand the portfolio and development programme. “We are pleased to have secured significant long-term finance when yields are still close to historic lows,” he said.

Cornerstone has made one other loan, a 12-year, £83m, fixed-rate facility for Derwent London, signed in August 2012, but has more in the pipeline.

After hiring Chris Bates to drive its European lending aspirations, Cornerstone has ended its contract with Laxfield.

Laxfield’s managing director Adam Slater said his business was “in an extremely active phase of deal closing, and is set for a record last quarter in 2013”.

Cornerstone’s funding for its European senior lending comes from its US parent, financial group MassMutual.