LGIM Real Assets has executed a £450m (€494 mln) refinancing for its Industrial Property Investment Fund, up to £550m (€604 mln).
New financing for the fund was agreed following its conversion from a closed-end, fixed-life vehicle to an evergreen open-ended fund, allowing for more availability of finance options.
The debt facilities include a £200m (€219 mln) long-term fixed rate loan, allowing investors to benefit from the low interest rate environment, and a £250m revolving credit facility so the Fund can respond to market opportunities as and when they arise.
Funding will be provided by a syndicate of relationship lenders including lead agent Wells Fargo Bank N.A., as well as RBS International and Lloyds Bank.
The fund, which is valued at over £2.3bn (€2.52 bn), specialises in multi-let industrial and trade assets largely in the South East of England.
Jonathan Holland, senior fund manager of IPIF at LGIM Real Assets, said: 'The securing of a new debt facility for the Fund will help boost our investment capacity and take advantage of new market opportunities, including a rise in demand for e-commerce and last-mile warehouse facilities.
'The Fund has remained incredibly resilient during the lockdown period, continuing to significantly outperform the market, retain high occupancy levels and secure high-value deals across transport corridors in the South East of England.
'Over the coming months, we will continue to push forward with the Fund’s strategy, looking for new opportunities to broaden our leading position in the mix-box development market.’
Max Sinclair, EVP and head of UK commercial real estate (CRE), at Wells Fargo, said: 'This is a high quality business which continues to provide first class returns to its investors, and despite challenging current market conditions it has shown strong resilience. Acting as the lead agent, we are delighted to have been given an opportunity to extend and deepen our relationship with IPIF alongside our co-lending peers.'
