Tuesday, 5 August 2014
Canada Life Investments in £24 million loan deal with Mayfair Capital’s PITCH Fund (UK)
Canada Life Investments and Mayfair Capital Investment Management announced the completion of a second loan of £24 mln (approx. €30 million) for a seven-year facility to the Property Income Trust for Charities (PITCH).
This brings Canada Life Investments’ total loans to the fund to £50 mln (approx. €62 mln) following the first £26 mln (approx. €32 mln) 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.
This comes on the back of a 20-year, £200 mln (approx. €251 mln)fixed-rate deal secured against a portfolio of prime central London properties to a private investor, completed in May this year.
Nicholas Bent, Head of Real Estate Finance, Canada Life Investments, said, “We are pleased to have successfully provided our second loan to PITCH on a broad portfolio of long leased assets. 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%”.
Source: Quill PR