Development finance

M&G Investments is planning to raise follow on capital for its European senior and junior debt strategies and is considering a development finance fund, after investing £2.2 billion in CRE debt in 2015, Real Estate Capital can reveal.

After a pause around the time of the general election in May, finance requests have come back strongly in recent months according to the latest Laxfield UK CRE Debt Barometer.

Legal & General Property is expanding the debt facilities for two of its existing funds and looking for debt for a third vehicle, to raise £260m for further acquisitions, asset management and to cut borrowing costs, Real Estate Capital can reveal.

Lloyds Bank Commercial Banking and Investec Structured Property Finance have provided a £190m development facility to Cain Hoy and Sager Group for their £400m Islington Square joint venture in London. Investec has also taken a minority equity stake in the project. It provided an initial refinancing loan for the scheme which has now been rolled into the development facility with Lloyds.

Development lending is predicted to increase by more than a third this year to £10bn, according to a report from the Investment Property Forum (IPF). Based on a survey of 35 lenders and 31 borrowers, financing for development for 2015 will reach £9.98bn in the UK, up from £7.45bn last year. However, cost inflation, particularly […]

Helical Bar has obtained a £165m revolving credit facility from HSBC for its Barts Square scheme, in the City of London, held in joint venture with The Baupost Group. The new loan provides funding for the construction of Phase 1 of the project, which incorporates 144 residential units, 24,000 sq ft of offices , retail/restaurant space and accompanying public realm improvements and refinances an existing £35m facility from HSBC.