Canada Life Asset Management has completed a £101.15 million loan to Patrizia to finance its acquisition of five UK industrial assets on behalf of a South Korean pension fund.

The five-year fixed-term loan is secured on a portfolio of five UK multilet industrial and logistics estates that Patrizia has been assembling alongside Caisson Investment Management and has a loan-to-value ratio of 58%.

The portfolio, comprising 1.5 million square feet, is located across five regions and has over 70 tenants. The properties are established estates in Birmingham, Feltham, Aylesford and Fife, as well as a new-build asset in Braintree, Essex.

There was a lot of competition for the deal given the quality of the client and the assets backing the loan," said Nicholas Bent, head of real estate finance at Canada Life Asset Management. "Reaching the halfway point of 2021, we have demonstrated a strong appetite for commercial real estate loans. Our recent originations involve strategic targeting of high-quality sponsors in markets that we believe will continue to perform well as we emerge from the pandemic.”

The assets include: Quarry Wood, an industrial estate with 457,000 square feet across 27 units let to 18 tenants in Aylesford that was acquired in July 2020 for £37 million; Bradbury Park, a newly constructed estate located in Braintree, Essex comprising 193,000 square feet across 11 units acquired for £28 million; Belleknowes Industrial Estate, located in Inverkeithing, Scotland, a 140,000-square-foot estate acquired for £10.5 million; and the 440,000-square-foot Wednesbury Trading Estate 12 miles North West of Birmingham comprising units let to 35 tenants.

Canada Life Asset Management’s property lending business has a 30-year track record within the UK and has further expanded its lending ambitions over recent years, now targeting £1 billion of new lending each year. All of Canada Life Asset Management’s loans are managed in-house by its dedicated London team.

Patrizia is among the top 10 independent investment managers for real estate in Europe.

Canada Life Asset Management was advised by Taylor Wessing LLP and Knight Frank’s valuation team.

By Sharon Smyth
CoStar News Click here for original article 

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Lisa Allsup

Caisson Investment Management