Thursday, 17 July 2014
M&G Investments provides £238 million financing package to Northern Trust Group (UK)
M&G Investments, a leading international investment manager, has completed a deal to provide £238 million (€300 million) of financing for Northern Trust Group, the property investment, development and land regeneration company.
M&G is providing a whole loan for a term of five years against assets of over £360mln (€455 mln). The financing is secured against Northern Trust’s portfolio of industrial, trade and office parks, comprising over 3,600 individual units in total and its c. 1,700 acre land bank. The vast majority of the portfolio is let to SMEs in the UK, meaning the portfolio is supported by numerous and well-diversified income streams.
M&G was attracted to the deal by the strength of the sponsor and its demonstrable track record of maintaining occupancy across the portfolio.
Dan Riches, Director, Real Estate Finance, M&G Investments, says: “The diversity of the underlying income of the portfolio attracted us to this deal. Northern Trust is long established in its market and offers companies of all sizes the premises they need to operate and grow their businesses. The entire whole loan will be invested and held by funds managed by M&G.”
A spokesperson for Northern Trust says: “The facility from M&G enables us to continue our strategy of investing in and growing our business which is focussed on property investment, development and land regeneration. We look forward to a long and productive relationship with M&G”.