FINANCE: Canada Life Investments has completed its second loan to Mayfair Capital Investment Management’s charities fund.
The North American institution has agreed a £24m, seven-year facility to the Property Income Trust for Charities.
It follows CLI’s first £26m, five-year facility in August 2013.
The two facilities are secured by a mixed 13-property portfolio of office, retail and industrial assets across the UK with a weighted average unexpired lease term of more than 10 years.
Both interest-only fixed-rate loans were drawn at around 50% LTV.
In May, CLI also completed a 20-year, £200m fixed-rate deal secured against a portfolio of prime central London properties to a private investor.
CLI head of real estate finance Nicholas Bent said, “This new loan helps us to build on our existing relationship with Mayfair Capital Investment Management and is also a demonstration of our commitment to providing flexible, medium-term loan facilities to institutional borrowers.
“While Canada Life Investments is traditionally seen to be a long-term lender, this latest loan is evidence that we also provide shorter-term facilities to high quality borrowers.”
James Thornton, chief executive of Mayfair Capital Investment Management and fund director of PITCH, said: “We are happy to have extended our financing arrangements with Canada Life Investments via a second loan facility, on favourable terms, which will help to enhance PITCH’s distribution yield.
“The weighted cost of funds across the portfolio now stands at 3.98%, while the loan-to-value is just over 20%.”
bridget.o’connell@estatesgazette.com
