Federated Hermes jv secures £88m loan for Leeds’ Wellington Place

A joint venture between Federated Hermes and Canada Pension Plan Investment Board has obtained an £87.7m loan facility from Barings Real Estate, on its mixed-use Wellington Place business park in Leeds. The collateral of the five-year floating rate loan relates to the completed properties on Wellington Place’s first site, measuring 482,587 sq ft. Barings previously provided a £200m facility on the jv’s Milton Park business park in Oxfordshire, in 2018. Wellington Place has been managed by Hermes-owned developer MEPC since initial construction in 2001. MEPC said it will use the financing to focus on further development at the campus. Chris Taylor, head of real estate and private markets at Federated Hermes, said: “This loan is a key transaction for our Wellington Place partnership with CPPIB and is representative of the appeal of Wellington Place as an asset, the strength of MEPC as asset manager, and the knowledge and experience of the partner sponsors. “We firmly believe in the ability of Wellington Place to deliver long-term value to investors. The support of Barings, which demonstrated its commitment as a long-term partner throughout the financing process, will allow MEPC to continue to grow Wellington Place and deliver enhanced returns on behalf of the sponsors and partners.” James Dipple, chief executive of MEPC, said: “The new loan, along with the ongoing backing of Federated Hermes and CPPIB, will provide us with a strong foundation to manage and grow Wellington Place. “Our focus will now turn to further development, including upgrading local amenities such as street lighting and furniture, developing sustainable transport initiatives at the estate, as well as seeking public art to further enhance the character of the campus, which is a truly vibrant and community-centred space in the heart of Leeds.” To send feedback, e-mail pui-guan.man@eg.co.uk or tweet @PuiGuanM or @EGPropertyNews