Wells Fargo closes £220m two-year facility for Threadneedle fund

Wells Fargo has refinanced and increased its commitment to Threadneedle Investments’ Strategic Property Fund IV extending a £220m two-year senior loan which matures in line with the closed-ended funds expiry.

Wells-Fargo-LogoCoStar News understands that the senior loan, aligned to the fund’s remaining life, is at mid-50s LTV, implying the property portfolio is valued at around £400m.

Threadneedle’sStrategic Property Fund IV comprises 19 commercial real estate assets located across the UK, including retail warehousing, office and industrial properties, including a 120-strong portfolio of retail bank branches.

The Wells Fargo senior loan refinances a legacy Eurohypo commitment, dating back to the launch of the Threadneedle fund back in 2009, in which the former Commerzbank subsidiary extended a £130m five-year loan, alongside RBS. Wells Fargo acquired the loans when it took over the Eurohypo UK platform and loan book last July.

This is the second legacy Eurohypo relationship which Wells Fargo’s UK real estate team has converted into its new owner’s business, following the extension of an existing relationship with Legal & General Property to provide a £75msenior loan for the fund manager’s second UK Property Income Fund. 

Eurohypo extended a variable debt facility, in line with the fund’s structure, to LPG’s predecessor fund for which £112.5m was drawn.

Threadneedle’s Strategic Property Fund IV, which launched in 2009 with an exclusive arrangement with Barclays Wealth to market the fund to its high net worth clients.

CoStar News understands the UK real estate team has closed near to £500m since the start of the year. In addition, Wells Fargo participated in a third in Lone Star’s £2bn loan-on-loan facility to finance its mammoth £5.2bn Project Salt and Project Rock loan portfolios from IBRC, which is understood to have been arranged from the US.

In a prepared statement, Richard Craddock, a director in Wells Fargo’s UK Commercial Real Estate team, said: “Wells Fargo is delighted to continue our relationship with Threadneedle through the refinancing of the Strategic Property Fund IV.

“We have worked with Threadneedle and its US parent company, Ameriprise Financial, for many years now and this was an opportunity to continue our support for this Fund as we look to continue growing our commercial real estate business in the UK.”

Michael Acratopulo, managing director and deputy head of Wells Fargo’s UK Commercial Real Estate business, added in the statement: “We were pleased to both increase and extend our existing commitments to Threadneedle’s Strategic Property Fund IV.

“This is consistent with Wells Fargo’s desire to develop and grow its relationships with top tier UK real estate investors and to seek to retain, where possible, our current loan facilities as they come to maturity.”

“The conclusion of this new £220m loan facility provides the Fund with future financing, whilst incorporating the required flexibility and commercial terms to enable the Fund to conclude its investment strategy over the duration of its remaining term,” added John Willcock, finance and commercial director of Threadneedle Property Investments. 

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
Gallery | This entry was posted in Banks, Fund Management, Market Trends, Refinancings and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s