ICG-Longbow reinvests for £16m loan

ICG-Longbow has provided a £16 million loan through its listed senior UK debt fund to clients of BMO Real Estate Partners, following the repayment of two loans to the fund.

The new facility was written by ICG-Longbow’s Senior Secured UK Property Debt Investments fund and is due to mature in 2019.

The deal takes the fund back to being fully invested following the repayment of two loans in July and October 2016. It represents 14.6 percent of the fund’s portfolio, according to an announcement from ICG-Longbow.

The financing is secured by a portfolio of 17 properties across the UK, predominantly high street shops and industrial assets.

Martin Wheeler, co-head of ICG-Longbow, told PDI the loan falls within the existing investment mandate of the fund. The fund’s existing investment policies restrict it to investing in loans with a maximum loan-to-value of 65 percent. The new loan has an LTV of 55 percent.

ICG-Longbow has proposed to shareholders a revised investment policy for the fund. Under the proposals, the firm plans to increase the maximum LTV of loans made by the fund to 85 percent. The change comes with the caveat that loans with an aggregate LTV of 80 percent make up no more than 20 percent of the overall portfolio.

As part of the proposals, the fund plans to place up to 40 million of new shares over a 12-month period to fund continued investment. It has a current value of £112 million. The share capital could be increased by almost 37 percent under the proposals.

ICG-Longbow also recently held a final close of its UK Real Estate Debt Investments IV fund. The fund exceeded its target of £750 million, hitting its hard-cap of £1 billion in November last year. As of December 31, the fund is approximately 67 percent invested, according to trading statement from the firm.