Merseyside fund works with LendInvest on £12m RE deal

LendInvest will syndicate a loan to the UK pension scheme and continue to the service the loan on behalf of the investor.

Merseyside Pension Fund (MPF) has partnered with marketplace lender LendInvest on a £12 million ($14.9 million; €13.8 million) loan supporting a real estate development in Canary Wharf.

The identity of the developer was not disclosed, but the capital will assist the developer in purchasing a site in the London Docklands area. The developer is awaiting permission to build a budget hotel with 320 bedrooms and 199 residential units, a statement from LendInvest said.

Half of the loan amount will be syndicated to MPF, while LendInvest will hold onto the remaining £6 million. It is a 12-month loan with an LTV ratio below 50 percent.

LendInvest will continue to serve as security trustee and service the loan.

The deal is on the larger side for LendInvest with capital coming from the firm’s Montello Real Estate Opportunities fund. While the firm has a history of channelling institutional capital into its investment strategy, the partnership structure with MPL is a first for the firm.

CBRE Capital Advisors advised MPF on the deal.

Rod Lockhart, managing director at LendInvest Capital, said: “Returns from short-term property debt are increasingly attractive to investors in this low rate interest environment. We look forward to making co-investments with MPF and other UK pension funds as a regular component of our funding mix.”

MPF did not respond to a request for comment before press time.