M&G Investments (“M&G”), a leading international investment manager, has completed a deal to refinance £230 million for Northern Trust Group (“Northern Trust”), the property investment, development and land regeneration company.
The whole loan will be provided for a term of 5 years against assets in excess of £450 million. This deal is the refinancing of a loan provided by M&G in 2014, and remains secured against Northern Trust’s portfolio of industrial, trade and office parks, comprising over 3,600 individual units in total and its c. 5,000 acre land bank. The vast majority of the portfolio is let to SMEs in the UK. The new loan included an acquisition facility giving Northern Trust the ability to purchase new assets.
Dan Riches, Director, Real Estate Finance, M&G, says: “We are delighted to continue our relationship with Northern Trust. This new five year commitment we have made reflects our belief in the ability of Northern Trust to continue driving strong performance from their real estate portfolio. SMEs are the backbone of the UK’s economy, employing over 15 million workers, and Northern Trust is experienced in providing premises for businesses to thrive. The real estate portfolio is underpinned by a well-diversified income stream which creates an attractive lending proposition for our clients.”
A spokesperson on behalf of Northern Trust says “We are equally delighted to continue our relationship with M&G Real Estate Finance. They have a commercial approach and a desire to understand and help our business. The facility contains the flexibility we require to help the continued expansion of our portfolio through the acquisition of industrial parks and development land.”
The whole loan will be invested and held by funds managed by M&G. M&G’s Real Estate Finance team has invested over £6.5 billion in commercial mortgages in the UK and Europe and is one of the largest new lenders to emerge since the 2008 financial crisis.
We are delighted to continue our relationship with Northern Trust. This new five year commitment we have made reflects our belief in the ability of Northern Trust to continue driving strong performance from their real estate portfolio.
Dan Riches,
M&G, Real Estate Finance, Director