FINANCE: Legal & General Property has agreed a £275m refinancing for its Industrial Property Investment Fund with three lenders: RBS, Wells Fargo, and L&G’s lending arm, LGIM Commercial Lending.
The part fixed-rate, part floating-rate loan replaces a £210m facility due to expire in September 2015, and has a six-year term.
L&G has also secured a £75m revolving credit facility from RBS and Wells Fargo which will be drawn down for future investments.
RBS is the principal arranger of the debt, with a £95m stake in the secured facility and a 50% share of the revolving credit facility. Wells Fargo is a new lender to fund, and has also provided £90m of the secured facility and the remaining 50% of the revolving credit facility.
The £1bn IPIF is the UK’s largest industrial property fund and delivered a total return of 25.9% in the 12 months to June 2014.
IPIF merged with the £100m Falcon Property Unit Trust at the end of last year, as L&G aimed to create an economy of scale.
sophia.furber@estatesgazette.com
