UK long-income specialist LXi REIT has secured a £148 mln (€167.8 mln) loan from Canada Life Asset Management.
The facility will be used to refinance a UK regional portfolio of mixed use commercial property assets, normally let on inflation-linked, long-term leases.
The 16-year term loan facility has been provided at a 40% loan to value ratio and matures in March 2039.
Mark Dunstan, director, Real Estate Finance, Canada Life AM, said: ‘We are very pleased to establish a new long-term relationship with LXi REIT. The portfolio securing the loan offers good diversification and strong, long-term income streams. LXi’s focus on long-term investment opportunities is well aligned with our investment approach.’
Simon Lee, partner and fund manager, LXi REIT Advisors, commented: ‘LXI is delighted to welcome Canada Life Asset Management as a new lender to the group and we look forward to a long term and close relationship with them.’
Nicholas Bent, head of real estate finance, Canada Life AM, commented: ‘Despite uncertainty in the property market and wider economy, this significant long-term refinancing demonstrates our continued ambition to expand and diversify our commercial loan book by partnering with responsible investors and proven real estate specialists such as LXi.’
Canada Life AM was advised by Taylor Wessing, Morton Fraser and BNP Paribas.
With the new facilities, LXi REIT’s refinancing program has now been completed.
The outstanding loans result in a 6-year weighted average term to maturity and a weighted average capped all-in cost of debt of 4.7%.
