GIC backs €1.2b UK debt fund

Singaporean sovereign wealth fund GIC has provided initial equity for Laxfield Capital's new £1 bn (€1.2 bn) UK commercial mortgage programme.

The real estate arm of the Government of Singapore Investment Corporation (GIC) has provided initial investment in the programme.

Laxfield Capital said the programme would invest up to £1 bn in UK commercial mortgages over the next 24 months. The London-based advisory firm is specialised in commercial mortgage origination and investment management.

The Laxfield Capital programme will provide individual loans of between £40-£185 mln, with a 5-7 year duration and up to 75% loan-to-value (LTV) to a wide variety of commercial property sectors, including office, retail, industrial, residential and leisure across the UK.

The programme will provide whole loans and syndicate up to 75% of each mortgage to other preferred investors. GIC will retain a substantial junior investment in each loan.

Adam Slater, Managing Director of Laxfield Capital, said: 'The programme will fill a gap in the large-ticket commercial mortgage sector as few lenders are currently able to provide whole loans in excess of £100 mln at up to 75% LTV, particularly outside core locations or prime assets.'

Laxfield Capital currently manages £1.1 bn of commercial mortgage assets on behalf of global institutional investors, including life companies, banks and a sovereign wealth fund.