M&G Provides whole loan financing for Scottish Retail Park

 05 July 2017

 London

M&G Investments (“M&G”), an international investment manager, has completed a deal to provide 5-year whole loan financing for the Kingsgate Shopping Park in East Kilbride, owned by Orion European Real Estate Fund IV, CV (“Orion Fund IV”).

Orion Fund IV, the European real estate private equity fund, acquired the shopping park south of Glasgow in November last year. The property is 100% leased to 12 tenants including Sainsbury’s, M&S, Homebase and Next.

Dan Riches, Director, Real Estate Finance, M&G Investments, says: “This retail park is in an excellent location close to Glasgow, providing a catchment of over 600,000 shoppers, and is fully leased to desirable high street names including Sainsbury’s and M&S. The park also provides Orion with asset management opportunities – a firm which has a successful track record in this sector.
“Institutional investors seek commercial mortgages as an attractive alternative to bonds as the investment can offer good relative value for secured risk. The entire whole loan will be invested and held by funds managed by M&G”.

Britta Harper, Investment Director, Orion Capital Managers, says: “We are excited to own such a high quality property. Kingsgate offers a number of asset management opportunities to enhance the tenant mix in line with current consumer expectations for food and fashion offers. In M&G we found a financing partner that shares our vision for the property.”

M&G’s Real Estate Finance team has invested over £6.5bn 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 excited to own such a high quality property. Kingsgate offers a number of asset management opportunities to enhance the tenant mix in line with current consumer expectations for food and fashion offers. In M&G we found a financing partner that shares our vision for the property.

    Britta Harper,  Orion Capital Managers, Investment Director

If you require any further information, please contact

Irene Chambers
Corporate Communications
M&G Press Office
  +44 (0)20 7004 4132
  irene.chambers@mandg.co.uk



Notes to Editors

About M&G Investments
M&G is a leading international asset manager with a long-term, active approach to investing. The firm has been helping people to prosper by putting their money to work for more than 85 years. M&G’s customers include private investors, members of pension schemes and life insurance policyholders. Responding to the ever changing financial landscape, the firm has developed a wide range of investment solutions, across equities, fixed income, real estate, multi asset and infrastructure. At 31 March 2017 M&G manages over £275 billion in assets for its customers.

Headquartered in London, M&G employs over 2,000 people worldwide in 16 countries, managing assets in Europe, Asia and the US. M&G is the asset management arm of Prudential Plc in the UK and Europe.

As a steward of clients’ assets M&G recognises the importance of responsible investing with the analysis of environmental, social and governance (ESG) factors core to the business. M&G is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Program, which is dedicated to achieving the long-term goal of building climate resilient economies. M&G’s £27 billion real estate business arm has a sector leading approach to responsible property management, and is committed to assessing and improving the sustainability performance of its funds.

Orion Capital Managers LLP
Orion Capital Managers, L.L.P. (“Orion”) is a European real estate investment firm formed in 1999. Its business is commercial real estate investment management on behalf of major investors from around the world.

Orion invests in the full spectrum of commercial real estate in Europe, including direct assets, listed companies, private companies, and real estate debt.

Orion has offices in London, Madrid, Milan and Paris. Orion is wholly owned by its Founding Partners Aref H. Lahham, Van J. Stults, and Bruce C. Bossom who have worked as a cohesive management team for over 20 years. Prior to forming Orion the Partners established LaSalle Investment Management in Europe.

Orion is experienced, proactive and well positioned having created Orion European Real Estate Funds I, II, III IV, V and the core fund, Orion Income Return Partners, which combined have over €15 billion of investment capacity. The Orion Funds target a wide range of real estate investments throughout Europe.

M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.

This press release reflects the authors’ present opinions reflecting current market conditions which are subject to change without notice and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents. M&G does not offer investment advice or make recommendations regarding investments. Opinions are subject to change without notice. M&G Investments is a business name of M&G Investment Management Limited and is used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under number 936683 with its registered office at Laurence Pountney Hill, London EC4R 0HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority.