Hermes Investment Management, the £28.6 billion manager focused on delivering superior, sustainable, risk adjusted returns to its clients – responsibly, has completed a £10.38 million loan for its Real Estate Senior Debt Strategy. Hermes Investment Management has provided senior financing to Compagnie Du Parc to support the continued growth of its “Last Mile” portfolio; light industrial properties across Greater London.
The deal, which was extended at 65 per cent LTV over five years, allowed the borrower to refinance its existing debt, acquire a further light industrial estate and gives it the flexibility to pursue a number of asset management initiatives over the coming years.
Compagnie Du Parc is a private real estate investment firm. The group, through €2 billion of successful transactions, aggregates more than 30 years of property investment, development and management experience across France, Switzerland, US and the UK.
The £10.38 million loan brings the total amount Hermes Investment Management has invested in the UK real estate senior debt market to £360 million across 14 loans.
Vincent Nobel, Head of Real Estate Debt at Hermes Investment Management, said: “Compagnie Du Parc has a proven track record in the light industrial sector – particularly in London – where this sector is delivering great opportunities for both equity and debt. In a period of increased political change, bringing with it heightened uncertainty to some aspects of business and the economy, we look forward to continuing to construct a defensive loan portfolio by making further investments in 2017.”
Jonathan Coenca, Director of Compagnie Du Parc, said: “We are seeing unprecedented shortage of urban industrial space across Greater London. Rental values are being pushed by the increase in online sales and the London demographic trend. This refinancing is an endorsement of our strategy and will provide us the resources to grow the “Last Mile” portfolio to £100m. London’s greatest challenge is to welcome two million new Londoners and Compagnie Du Parc is dedicated to deploy its expertise, capital and network to leverage this opportunity.”