ICG-Longbow has completed a £16m loan to clients of BMO Real Estate Partners, bringing the lender’s average loan to value down despite the recent increase in its maximum LTV policy.
The loan, which has a maturity date of April 2019, has an LTV of about 55.5%, which brings the company’s average weighted average LTV down 30bps to 57.5%.
It used proceeds from the repayment of a £13.25m loan to Raees International for the facility.
In January, ICG-Longbow announced a change in its investment strategy, including raising its maximum LTV from 65% to 85% to take advantage of a gap in the market.
However, it added that it would not change its “cautious lending philosophy” and would still deliver dividends of about 6% pa.
The loan is secured against a portfolio of 17 properties across the UK and has an income stream from lettings to 50 tenants.
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