LGIM arranges €310m of UK BTR financing

LGIM Real Assets, part of the investment group of the UK insurer, has arranged £265 mln (€310 mln) from lenders for a debt facility to fund its Build to Rent Fund.

Lloyds, Natwest and ING have taken part.

The debt facility will be allocated against eight of the fund’s operational assets and is provided by way of £150 mln term facility and £115m revolving credit facility. The facility will principally be used to refinance £220 mln of existing development loans, representing what LGIM called ‘a significant milestone for the BTR Fund’ as it matures into an investment fund – as opposed to a majority development asset portfolio.

LGIM Real Assets’ BTR Fund has over 5,000 homes across 15 schemes in the UK. The eight assets are in Salford, Manchester, Bath, Walthamstow, Bristol, Leeds, and Birmingham.

In the last few years, the BTR sector has come into its own, explained LGIM. ‘It has cemented its position in the UK as an asset class and is successfully evolving away from the private rented sector.'

‘Since its inception in 2016, the BTR Fund has grown exponentially. Despite the challenges faced as a result of the coronavirus pandemic, in this year alone, the fund has welcomed its first residents to its flagship Mustard Wharf schemes in Leeds, Box Makers Yard in Bristol and completed the final phase of The Slate Yard in Salford, plus committed over £150 mln in investments to Birmingham and Leeds respectively.'

‘With a rapidly growing portfolio of over £2 bn and a pipeline to deliver a further 7,500 homes by 2025, LGIM Real Assets remains a leader within the sector.'





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