M&G Real Estate Finance team has provided a £353 million, five-year loan to refinance two assets in London that are jointly owned by Zeno Capital Limited and Oxygen Asset Management.
The two assets are Riverbank House, a 328,924 sq. ft office building in the City of London, which is let to Man Group plc until 2035, and a Sainsbury’s superstore on Purley Way, Croydon let until 2086.
“Since the financial crisis in 2008, asset managers have increasingly played an important role in diversifying Europe’s capital markets, which in turn has provided a wider set of investment opportunities for our institutional clients, including many pension funds seeking the secured income and good relative value on offer. Despite the current uncertain backdrop in the economy, our teams continue to selectively deploy capital where they find attractive opportunities for our clients,” said Will Nicoll, CIO Private & Alternative Assets, M&G Investments.
“This deal demonstrates our ability to provide borrowers with a single-source debt solution in a short time-frame. M&G will fund and hold the entire £353 million to maturity and it took a little over 8 weeks to close the transaction. We were attracted by the quality of the underlying real estate, and the excellent track record and professionalism of the sponsors,” said Dan Riches, Director, Real Estate Finance, M&G Investments.
“We have really enjoyed working with M&G to conclude this important refinance and look forward to developing the relationship in the future. The transaction will provide the group with the perfect platform to implement the exciting value add strategies imbedded within each of the assets,” said Mike Harris, on behalf of Zeno and Oxygen.