Legal & General Property has secured a £150m (€180m) debt facility with Wells Fargo and Santander for its second UK Property Income Fund.

L&G said the new seven-year facility provided it with a “hunting licence” for the fund, which allows investors to choose their preferred level of gearing of between 0% and 50% loan to value.

The new facility comes with an estimated all-in cost of borrowing of 4.5% for the duration of the loan.

Wells Fargo and Santander have previously provided debt to L&G’s first UK Property Income Fund.

The second fund, which will target a net IRR of 8-9% for ungeared investors and a net IRR of 12-14% for geared investors, has been invested in by seven clients from the UK, the Middle East and the Nordic region.

L&G also said it is close to completing its first purchase for the fund, having exchanged contracts to buy the Overgate Centre in Dundee from Land Securities for £125.3m.