M&G Investments has announced its first real estate loan in Sweden through its provision of SEK 700,000,000 (circa. £60 million) to Logistri Fastighets.
Logistri Fastighets owns, develops and manages commercial warehouse and light industrial properties, with a portfolio comprising 17 properties in Stockholm, Gothenburg, and southern Sweden. The loan is over five years and its flexible design allows extensions to the credit facility with M&G’s consent, enabling the company to continue its growth through add-on acquisitions.
Adam Willis, investment director in real estate finance for M&G Investments, said: “We’re pleased to have agreed a partnership with Logistri, marking our first real estate loan in Sweden. Logistri’s portfolio of long-leased industrial assets provides a resilient and stable income stream for our investors, and the flexibility we have provided will allow Logistri to continue with their plans for further acquisitions of high quality assets.”
M&G’s 17-strong Real Estate Finance team originate deals and deploy capital in commercial mortgages in the UK, Europe and the USA on behalf of around 100 global institutional investors. The team, part of M&G’s £67 billion Private & Alternative Assets division, is one of the largest new lenders to emerge since the global financial crisis and carefully deployed over €1 billion into the Continental European market over the past two years.
Ulf Attebrant, chief executive officer at Logistri Fastighets, said: “We are very pleased with the solution we have negotiated together with M&G. The company now has a constructive partner for the continued development of Logistri into a leading real estate company specializing in industrial properties. We are now continuing according to our strategy and intend to grow significantly in the coming years. Long leases in regional cities with well-managed and strong companies as tenants and interesting metropolitan locations with rental potential create a good prerequisite for stable cash flows and value development.”
