M&G Investments is providing £238m (€301m) of financing to a UK developer.
The investor said its real estate finance team had agreed to provide the Northern Trust Group with the five-year facility, secured against £360m of industrial, trade and office parks.
Dan Riches, director of real estate finance at M&G Investments, said it was attracted to Northern Trust by the diversity of underlying income in its portfolio, with most of it let to UK small and medium enterprises.
M&G’s total commitments in Europe since the start of this year now total around £1bn.
The firm has financed shopping centres in Ireland and Spain, as well as provided a 10-year loan on a residential property portfolio in the Netherlands at a 65% LTV ratio.
M&G has also lent £45m to UK housing association Link Group for a fixed, 31-year term.
In March this year, M&G raised £1.5bn from Europe and the US for two junior commercial mortgage funds.
A total of £605m was raised for M&G’s Real Estate Debt Fund II, aimed at European mezzanine real estate debt, while the Real Estate Debt Fund III closed at £750m.
The firm said 40 institutional investors committed to the funds.
M&G closed its first real estate debt fund in 2009.
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