Standard Life Investments has refinanced the expired senior debt facility for the property fund manager’s European Property Growth Fund (EPGF) with a three-year €150.7m loan with its existing bank Crédit Agricole Corporate and Investment Bank.
Crédit Agricole CIB’s three-year senior loan, a two-year extension option, is secured by a pan-European 11-strong office and retail portfolio with properties located across France, Belgium and Germany valued at €274m.
This puts the LTV at 55%, while CoStar News understands that pricing for the senior loan is sub 300 basis points over three-month Euribor.
Standard Life Investments’ EPGF is a prime to low prime portfolio, with a weighted unexpired lease term across the portfolio in double-digits, and strong covenants.
Crédit Agricole CIB, the incumbent lender on a previous five-year loan which expired in December, is thought to have beaten off competition from a number of active pan-European property lending banks, to refinance the pan-European portfolio.
The new facility provides the fund with the flexibility to support the fund management strategy and reduces EPGF’s total leverage in line with the fund’s medium-term target.
James Rushworth, fund manager, European Property Growth Fund, said: “Securing debt on this scale in the current economic environment is a considerable achievement. We’re particularly proud to have concluded this deal with Crédit Agricole CIB with whom we have an established, strong and fruitful working relationship.
“We will continue to execute the strategy we have in place for our European Property Growth Fund, which focuses on investment in high quality assets in core European markets to deliver long-term, stable returns.”
Neal Ledger, head of the UK property and hotel finance team at Crédit Agricole CIB, said: “We are very pleased to have completed this important refinancing on behalf of Standard Life Investments through its European Property Growth Fund.
“We look forward to working further with the Group via our network of international offices and through our wide and diverse product range.”
Last July, by Crédit Agricole CIB, along with Deutsche Postbank, financed Mike Hussey’s property investment management firm Almacantar’s £109m acquisition of CAA House and 1 Kemble Street with a £60m three-year loan.
Crédit Agricole CIB was also part of the eight-bank mega €1.55bn refinancing package for Icade, the French real estate investment trust, which is thought to have provided just under €100m, also last July.
Standard Life Investments has £9.9bn in real estate assets under management, as at the second quarter end, 2012.