Four UK pension funds have committed £370m (€409m) to ICG-Longbow’s latest real estate debt fund.
ICG-Longbow, the real estate division of debt specialist Intermediate Capital Group, confirmed that its Senior Debt Programme Vintage III has held a final close.
The fund continues the senior debt strategy launched in 2014, offering investors exposure to a defensive UK commercial real estate debt portfolio.
The strategy now has £1.2bn in assets under management.
Some of the pension funds in the third fund were repeat investors.
ICG-Longbow is targeting on regional markets as well as London. Loan sizes are in the range of £10m to £75m.
David Mortimer, head of senior debt at ICG-Longbow, said: “Market conditions remain attractive from a risk-return perspective, and to date we have completed or agreed terms on eight loans with a total balance of circa £160m.
“We continue to see solid interest from potential borrowers and we expect Vintage III to be fully allocated in the next quarter.”