Brockton Capital has selected a trio of banks to refinance the £400m portfolio of industrial assets it has amassed with its asset manager and joint venture partner Dunedin Property.
Barclays, M&G and Royal Bank of Scotland are jointly providing around £300m of debt. The five-year loan reflects a loan-to-value of close to 75%.
It is understood that the three lenders were chosen in part because of their eagerness to work with Brockton and Dunedin and together to expand the size of the portfolio as the pair build up their logistics platform.
The refinancing process, codenamed Project Frame, began in March when JLL was appointed as an adviser.
Within Brockton the process is being handled by its new associate partner and head of capital Sanjay Sethi, who joined the private equity fund manager in March.
He joined from Moor Park Capital Partners where he was a principal and was previously executive director at RBS.
Sethi is responsible for arranging the financing for Brockton’s individual acquisitions as well as its debt and capital structuring at a fund level.
This role was previously being undertaken by associate partner Alex Wright, who now focuses on acquisitions.
Brockton and Dunedin teamed up in December 2012 with an initial target to buy £150m of secondary industrial assets.
Its assets include the Styx portfolio, which it bought from M7 Real Estate in July last year for £50.3m; the Partridge portfolio, which it bought from Columbus Capital Management in October 2014 for £230m; and 41 assets from the Hansteen UK Industrial Property Unit Trust, which were acquired last November for £110.5m.
Brockton is currently raising its third UK-focused value-add/opportunity fund, which it launched in May last year and is targeting £500m of equity.
