M&G provides £353 million loan for London Real Estate assets

Almost £1 billion deployed in the commercial real estate finance market in 2020

M&G’s Real Estate Finance team has provided a £353 million, five-year loan to refinance two assets in London that are jointly owned by Zeno Capital Limited and Oxygen Asset Management.

The two assets are Riverbank House, a 328,924 sq. ft office building in the City of London, which is let to Man Group plc until 2035, and a Sainsbury’s superstore on Purley Way, Croydon let until 2086.

Will Nicoll, CIO Private & Alternative Assets, M&G Investments, says: “Since the financial crisis in 2008, asset managers have increasingly played an important role in diversifying Europe’s capital markets, which in turn has provided a wider set of investment opportunities for our institutional clients, including many pension funds seeking the secured income and good relative value on offer. Despite the current uncertain backdrop in the economy, our teams continue to selectively deploy capital where they find attractive opportunities for our clients.

Dan Riches, Director, Real Estate Finance, M&G Investments, says: “This deal demonstrates our ability to provide borrowers with a single-source debt solution in a short time-frame. M&G will fund and hold the entire £353 million to maturity and it took a little over 8 weeks to close the transaction. We were attracted by the quality of the underlying real estate, and the excellent track record and professionalism of the sponsors.

“We continue to see demand from sponsors for debt capital, having committed almost £1 billion this year, and have an active pipeline of deals. Our investors are focussed on attractive risk-adjusted returns and ability to deploy in challenging markets and opportunities of this type – originated directly with the sponsor– further demonstrate our ability to invest our clients’ capital on attractive terms and in volume.”

Mike Harris, on behalf of Zeno and Oxygen, said “We have really enjoyed working with M&G to conclude this important refinance and look forward to developing the relationship in the future. The transaction will provide the group with the perfect platform to implement the exciting value add strategies imbedded within each of the assets”

M&G’s Real Estate Finance team is part of M&G’s £65.5 billion Private & Alternative Assets business. It has committed over £10 billion in commercial mortgages (as at 30 June 2020) in the UK, Europe and the USA on behalf of more than 100 global institutional investors and is one of the largest new lenders to emerge since the 2008 global financial crisis.

Download a PDF of the release

M&G Press Office

Irene Chambers

Media Relations

+44 (0)782 569 6815

[email protected]

Notes to editors

OpenAbout M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £339 billion of assets under management (as at 30 June 2020). M&G plc has over 5 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

For nearly nine decades M&G Investments has been helping its customers to prosper by putting investments to work, which in turn creates jobs, homes and vital infrastructure in the real economy. Its investment solutions span equities, fixed income, multi asset, cash, private debt, infrastructure and real estate.

M&G recognises the importance of responsible investing and is a signatory to the United Nations Principles for Responsible Investment (UNPRI) and is a member of the Climate Bonds Initiative Partners Programme.

For more information, please visit: https://global.mandg.com/

OpenDisclaimer

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

The services and products herein are available only to investment professionals and are not available to individual investors, who should not rely on this communication. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G does not accept liability for the accuracy of the contents.

This press release is issued by M&G Investment Management Limited (unless stated otherwise), registered in England and Wales under number 936683, registered office 10 Fenchurch Avenue, London EC3M 5AG. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Real Estate Limited is registered in England and Wales under number 3852763 and is not authorised or regulated by the Financial Conduct Authority. M&G Real Estate Limited forms part of the M&G Group of companies.

M&G Securities Limited: Terms and Conditions for downloading Photographic material

1. Introduction

Welcome to the myM&G campaign landing page (the "Website"). The Website is operated by M&G Securities Limited (“M&G”, “we”, “us” or “our”). By accessing or using the Website and downloading any photographs, images, graphics, or any other visual content available for download or stored on the Website or M&G’s content management system (the “Photos”), you (“You”) represent to have read, understand and agree to comply with and be bound by these Terms and Conditions (the "Terms"), forming a binding agreement between You and us. If You do not agree to these Terms, please do not use the Website.

2. Intellectual Property Rights

All Photos available on the Website are the property of M&G or its licensors and are protected by copyright, trade mark, and other intellectual property laws. Unauthorised use of any Photos or content is strictly prohibited.

3. Permitted Use

Subject to your compliance with these Terms, M&G grants You a limited, non-exclusive, non-transferable, and revocable licence to download and use the Photos available on the Website for any purpose, except for purposes which are defamatory, derogatory, related to pornography, otherwise indecent, or involve the creation or dissemination of AI-generated “deep fake images”. Photos can only be downloaded from the hidden URL provided in the press release.

4. Additional prohibitions

You agree that You will not:

(a) modify, alter, or create derivative works from the Photos;

(b) use the Photos in any manner that infringes on the intellectual property rights of M&G or any third party;

(d) share the hidden URL with any unauthorised third party.

5. Attribution

When using the Photos, You must provide appropriate credit to M&G by including a link to our Website or mentioning the source in a manner that is reasonable and customary.

6. Disclaimer of Warranties

The Photos on the Website are provided “as is” without any warranties of any kind, either express or implied. M&G does not warrant that the Photos will be error-free or that your access to the Photos will be uninterrupted.

7. Limitation of Liability

In no event shall M&G be liable for any direct, indirect, incidental, special, or consequential damages arising out of or in connection with the use of the Photos, even if M&G has been advised of the possibility of such damages. As the Photos are provided free of charge, M&G's total liability to You for any damages, losses, and causes of action shall not exceed the amount paid by You for accessing the Photos, which is nil.

8. Indemnification

You agree to indemnify and hold harmless M&G, its affiliates, and their respective officers, directors, employees, and agents from and against any claims, liabilities, damages, losses, and expenses arising out of or in any way connected with your use of the Photos.

9. Changes to these Terms

M&G reserves the right to modify these Terms at any time. Any changes will be effective immediately upon posting on the Website. If a "click to accept" mechanism is not implemented, You will be notified of changes to the terms via email or a prominent notice displayed on the Website. Your continued use of the Website after any changes constitutes your acceptance of the new Terms.

10. Governing Law

These Terms shall be governed by and construed in accordance with the laws of England and Wales, without regard to its conflict of law principles. Any disputes arising out of or in connection with these Terms, including any questions regarding their existence, validity, or termination, shall be subject to the exclusive jurisdiction of the courts of England and Wales.

11. Contact Information

If you have any questions or concerns about these Terms, please contact us at [email protected].

2025 apprenticeships open now

Reframing later life