pbb Deutsche Pfandbriefbank has provided a £75 million (approx. 93.7 million) facility to Metric Income Plus Partnership (MIPP), the joint venture created in November 2011 between UK Retail REIT Metric Property Investments PLC (Metric) and pension fund Universities Superannuation Scheme (USS). The loan will allow MIPP to refinance assets that have already been acquired and to purchase additional properties.
MIPP targets out-of-town retail parks ranging in value between £2 and £20 million with net initial yields in excess of 7%. Added to the £75 million equity commitment of USS and Metric, pbb's facility brings the total investment capacity of MIPP to £150 million (approx. 187 million). Since its creation, MIPP already invested approximately £75 million on a total of eight properties.
Charles Balch, Head of Real Estate Finance International at pbb Deutsche Pfandbriefbank, commented: "Metric is a key target client for our bank. We are delighted to be able to support its strategy with USS in the UK retail sector".
Andrew Jones, Chief Executive of Metric, commented: "This deal strengthens our relationship with pbb Deutsche Pfandbriefbank. It also demonstrates our ability to secure a flexible senior facility in a challenging environment".
Source: Deutsche Pfandbriefbank AG