L&G industrial fund secures £550m debt facility

Legal & General Investment Management Real Assets has completed a £450m refinancing for its Industrial Property Investment Fund, with scope to extend to £550m subject to lender support. New financing was agreed following its conversion from a closed-end, fixed-life vehicle to an evergreen open-ended fund. The facilities include a £200m long-term fixed rate loan and a £250m revolving credit facility. Funding will be provided by a syndicate of lenders including lead agent Wells Fargo Bank, RBS International and Lloyds Bank. The fund, which is valued at more than £2.3bn, specialises in multilet industrial and trade assets, largely in the South East. L&G said the fund remained open during lockdown and received no redemption requests. Jonathan Holland, senior fund manager of IPIF at LGIM Real Assets, said: “The securing of a new debt facility for the fund will help boost our investment capacity and take advantage of new market opportunities, including a rise in demand for e-commerce and last-mile warehouse facilities. “The fund has remained incredibly resilient during the lockdown period, continuing to significantly outperform the market, retain high occupancy levels and secure high-value deals across transport corridors in the south-east of England. “Over the coming months, we will continue to push forward with the fund’s strategy, looking for new opportunities to broaden our leading position in the mix-box development market.” Max Sinclair, executive vice president and head of UK commercial real estate at Wells Fargo, said: “This is a high-quality business which continues to provide first-class returns to its investors, and despite challenging current market conditions it has shown strong resilience.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette