WELPUT has extended its relationship with US financial services firm Wells Fargo by agreeing to a £140m (118.8m) debt refinancing.

The specialist central London real estate fund managed by Schroder Real Estate said the new seven-year facility, which is split between a £50m term loan and a £90m revolving credit facility, refinances a £65m facility with MetLife.

WELPUT said the refinancing supports its strategic objectives by reducing the overall cost of debt and providing increased capacity to take advantage of new asset management and investment opportunities as they arise.

The new loan adds to the existing £235m loan agreed with Wells Fargo in 2015, which matures in 2022.

The combined facilities provide WELPUT with a total debt capacity of £375m, split between a £150m term loan and £225m of revolving credit facility, it said.

Jourdan Rajwan, the investment manager at Schroder Real Estate, said: “We are delighted to have secured a new loan with Wells Fargo who are a long-term and supportive lender to WELPUT.

“WELPUT is well positioned following recent disposals with a relatively low loan to value of 23%. The new facility provides additional firepower to invest in the portfolio and take advantage of market opportunities as they arise.”

WELPUT is an open-ended fund created in 2001 and advised by Grafton Advisors.

Ker Gilchrist, the property director at Grafton Advisors, said: “Given the nature of WELPUT’s active portfolio, this puts us in a great position to continue to progress our refurbishment and development pipeline, particularly with Regents Wharf in Kings Cross.”

Max Sinclair, the UK head of commercial real estate at Wells Fargo, said: “We are pleased that with our support, the additional financing package to WELPUT will facilitate its investment and development initiatives.

“Wells Fargo is an active participant within the UK’s commercial real estate market, and as this loan demonstrates, we are well positioned to provide large single-hold senior loans to experienced sponsors.”