Canada Life Asset Management has provided a £148 million loan to LXi REIT plc.
The loan will refinance a mixed-use, UK regional portfolio of commercial property assets, typically let on inflation-linked, long-term leases, providing a diversified, secure income profile, on behalf of Canada Life’s annuity business.
The loan has been provided at an LTV of 40% and is over a 16-year term, maturing in 2039.
Mark Dunstan, Director, Real Estate Finance, Canada Life Asset Management, said: “We are very pleased to establish a new long-term relationship with LXi REIT. The portfolio securing the loan offers good diversification and strong, long-term income streams. LXi’s focus on long-term investment opportunities is well aligned with our investment approach.”
Simon Lee, Partner and Fund Manager, LXi REIT Advisors, commented: “LXI is delighted to welcome Canada Life Asset Management as a new lender to the group and we look forward to a long term and close relationship with them.”
Nicholas Bent, Head of Real Estate Finance, Canada Life Asset Management, commented: “Despite uncertainty in the property market and wider economy, this significant long-term refinancing demonstrates our continued ambition to expand and diversify our commercial loan book by partnering with responsible investors and proven real estate specialists such as LXi.”
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