L&G has completed the refinancing of its Industrial Property Investment Fund (IPIF) through a newly agreed £400m revolving credit facility (RCF).
The new facility, which increases the funding capacity of its previous £350m facility and has the ability to extend to £500m subject to lender support, will be provided by a syndicate of lenders, including Lloyds Bank, RBS International and Banco Santander. The termination date of the facility has been extended from 2025 to 2028.
L&G’s IPIF, which has a gross asset value of circa £3bn, specialises in a diversified selection of multi-let industrial assets, primarily in London and the South East of England.
Jonathan Holland, senior fund manager of IPIF, asset management, at L&G, said: “The announcement of the increased credit commitment to IPIF signals the strength of the fund’s offering and financial positioning in delivering its strategy and growth ambitions in the industrial real estate sector. We are dedicated to investing in high quality, well performing assets, which offer strong returns from increased rental growth as demand in the sector continues to rise. Benefiting from the additional flexibility provided by the credit line, the fund is set to realise its ambitions by continuing to apply a long-term approach to our portfolio formation.”
Dinesh Murugesh-Warren, senior corporate finance manager, asset management, at L&G, added: “We are pleased to announce the successful refinancing of the fund, which includes up to £150m in additional lending capacity. This significantly enhances the fund’s financial flexibility and strategic firepower. The refinancing was secured on improved terms, including more favourable margin and fee structures. We extend our sincere thanks to RBS International and Lloyds Bank for their continued support, and we are delighted to welcome Banco Santander into the lending group, marking their return to L&G private markets funds.”
