FINANCE: Wells Fargo has provided £220m for the refinancing of Threadneedle’s Strategic Property Fund IV.
As revealed by Estates Gazette, the US lender provided the loan to help refinance three existing loan facilities within the fund.
Eurohypo’s UK commercial real estate team initially provided financing for two of the three existing loans within the fund when it was launched in 2009.
Wells Fargo acquired the loans when it took over the Eurohypo UK platform and loan book.
One of the loans was a £130m debt facility secured on a 50:50 basis from RBS and Eurohypo in August 2009.
The refinancing is understood to reflect a loan to value of around 50%.
The vehicle is the largest fund within Threadneedle’s closed-end leveraged UK real estate fund range and owns 19 commercial real estate assets located across the UK. The fund includes retail warehousing, office and industrial properties, and a portfolio of around 120 retail bank branches.
The term of the refinancing is intended to match the closed-ended fund’s life to “enable Threadneedle to maximize returns to investors as it continues to assess its asset-management strategy for the portfolio”.
Richard Craddock, a director in Wells Fargo’s UK commercial real estate team, said: “We have worked with Threadneedle and its US parent company, Ameriprise Financial, for many years now and this was an opportunity to continue our support for this fund as we look to continue growing our commercial real estate business in the UK.”
Michael Acratopulo, managing director and deputy head of Wells Fargo’s UK commercial real estate business, said increasing and extending its commitments to Threadneedle was “consistent with Wells Fargo’s desire to develop and grow its relationships with top-tier UK real estate investors and to seek to retain, where possible, our current loan facilities as they come to maturity.”
John Willcock, finance and commercial director of Threadneedle Property Investments, said the fund had provided investors with highly diversified exposure to the UK commercial property market, while delivering strong investment returns.
He added: “The conclusion of this new £220m loan facility provides the fund with future financing, while incorporating the required flexibility and commercial terms to enable the fund to conclude its investment strategy over the duration of its remaining term.”
bridget.oconnell@estatesgazette.com
