M&G Investments (“M&G”), an international investment manager, has completed a deal to provide 5-year whole loan financing for the Kingsgate Shopping Park in East Kilbride, owned by Orion European Real Estate Fund IV, CV (“Orion Fund IV”).
Orion Fund IV, the European real estate private equity fund, acquired the shopping park south of Glasgow in November last year. The property is 100% leased to 12 tenants including Sainsbury’s, M&S, Homebase and Next.
Dan Riches, Director, Real Estate Finance, M&G Investments, says: “This retail park is in an excellent location close to Glasgow, providing a catchment of over 600,000 shoppers, and is fully leased to desirable high street names including Sainsbury’s and M&S. The park also provides Orion with asset management opportunities – a firm which has a successful track record in this sector.
“Institutional investors seek commercial mortgages as an attractive alternative to bonds as the investment can offer good relative value for secured risk. The entire whole loan will be invested and held by funds managed by M&G”.
Britta Harper, Investment Director, Orion Capital Managers, says: “We are excited to own such a high quality property. Kingsgate offers a number of asset management opportunities to enhance the tenant mix in line with current consumer expectations for food and fashion offers. In M&G we found a financing partner that shares our vision for the property.”
M&G’s Real Estate Finance team has invested over £6.5bn billion in commercial mortgages in the UK and Europe and is one of the largest new lenders to emerge since the 2008 financial crisis.
We are excited to own such a high quality property. Kingsgate offers a number of asset management opportunities to enhance the tenant mix in line with current consumer expectations for food and fashion offers. In M&G we found a financing partner that shares our vision for the property.
Britta Harper,
Orion Capital Managers, Investment Director