Key Takeaways
- • LGIM Real Assets provided a seven-year senior secured loan of £30m to Clipstone Industrial REIT, secured against an initial portfolio of six properties in Chessington, Swanley, Enfield, Sutton, Reading and Chelmsford.
- • The facility includes a shelf facility to support Clipstone's future acquisitions, with the balance of funds drawable at a later date to match acquisition requirements.
- • The deal was arranged by LGIM Real Assets' real estate debt business, with Centrus Advisors acting as debt adviser and CMS representing Legal & General.
- • The six assets are a mix of multi-let industrial estates and single-let last mile units, positioned to benefit from a shortage of industrial space around London and the South East.
- • LGIM described the loan as a diversification of its real estate debt book and a stable income stream for internal and external clients.
Summary
LGIM Real Assets, the real assets platform of Legal & General, has provided a seven-year senior secured loan of £30m to Clipstone Industrial REIT, according to Insider Media. The financing is secured against an initial portfolio of six properties located in Chessington, Swanley, Enfield, Sutton, Reading and Chelmsford. The transaction was arranged by LGIM Real Assets' real estate debt business, with Centrus Advisors acting as debt adviser.
The loan includes a shelf facility intended to support Clipstone's future acquisitions. Toby Dean, chief executive of Clipstone Investment Management, said LGIM's real estate team was able to offer competitively priced debt finance while giving Clipstone the flexibility to draw some funds immediately and the balance at a later date to suit its acquisition requirements.
The portfolio comprises a mix of multi-let industrial estates and single-let last mile units. The properties are expected to benefit from the current shortage of industrial space around London and the South East.
James Spencer-Jones, head of real estate debt at LGIM Real Assets, said the investment supports a high-performing REIT with growth ambitions and provides a robust income stream for the firm's internal and external clients. He said the deal fits LGIM's wider industrial sector knowledge and offers exposure to an outperforming sector. He also cited highly constrained supply and record demand from domestic and international investors, including e-commerce occupiers, as creating a stable backdrop for industrial debt.
Legal & General was represented by CMS on the financing, while Russell Cooke and Mills & Reeve acted for Clipstone.
The loan includes a shelf facility intended to support Clipstone's future acquisitions. Toby Dean, chief executive of Clipstone Investment Management, said LGIM's real estate team was able to offer competitively priced debt finance while giving Clipstone the flexibility to draw some funds immediately and the balance at a later date to suit its acquisition requirements.
The portfolio comprises a mix of multi-let industrial estates and single-let last mile units. The properties are expected to benefit from the current shortage of industrial space around London and the South East.
James Spencer-Jones, head of real estate debt at LGIM Real Assets, said the investment supports a high-performing REIT with growth ambitions and provides a robust income stream for the firm's internal and external clients. He said the deal fits LGIM's wider industrial sector knowledge and offers exposure to an outperforming sector. He also cited highly constrained supply and record demand from domestic and international investors, including e-commerce occupiers, as creating a stable backdrop for industrial debt.
Legal & General was represented by CMS on the financing, while Russell Cooke and Mills & Reeve acted for Clipstone.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.