Citi is lined up to finance ?Oaktree Capital Management’s and Anglesea Capital’s £280m off-market logistics portfolio purchase.
The US investment bank has been selected to provide a circa £220m, five-year loan at 300 to 325 basis points over Libor.
The deal reflects a loan-to-value ratio of circa 80%, which is likely to see the debt ?structured into a junior and senior tranche. Citi might then choose to sell down the senior tranche.
The loan will close on 15 July.
Rival investment banks including Morgan Stanley, Goldman Sachs and Deutsche Bank are also thought to have been interested in the funding for the 16-asset, 3.6m sq ft portfolio. A number of other lenders also looked at the deal.
The portfolio includes three vacant assets but one source said: “The market is supportive of reducing vacancies in the wider logistics market and it is a good US name sponsor, which means you could take a view on terms for the deal.”
Citi has established itself as one of the most active lenders in Europe since it fully restarted its lending business in 2011. This deal provides a further indication of its appetite to increase its market share.
It comes after the bank was reported to have provided a senior loan of more than £300m against the in the City. The debt replaced an historic loan inherited by Ares and Delancey when they acquired the building via their takeover of Minerva.
Citi has completed a number of other high-profile deals including a €500m (£410m) loan jointly with Royal Bank ?of Canada to Lone Star for ?its €1.1bn purchase of ?German property firm TLG Immobilien.
Oaktree and Anglesea are buying the portfolio as the US private equity firm and asset manager build up a UK sheds platform.
The deal adds assets in ?Liverpool, Leeds, Sheffield, and across the Midlands and South East as part of this acquisition.
All parties declined to comment.
bridget.oconnell@estatesgazette.com
