M&G launches into Rocket financing

M&G has provided a £70m financing package to a real estate development previously completed by Rocket Investment and leased by Premier Inn.

M&G Investments has provided £70 million (€81 million, $88 million) in whole loan financing for a building developed by Rocket Investments. The building, 10 East Road, is leased by hotel-chain Premier Inn.

The financing for the London-based development is being provided over a five year period. A spokeswoman for M&G did not return calls seeking further comment by time of publication.

In a company announcement, Dan Riches, director for real estate finance at M&G, noted the long-lease with Premier Inn and the development’s central London location made it an attractive investment. The entire whole loan will be invested and held by M&G fund, he also noted in the announcement.

M&G has made other real estate financing deals this year. The firm announced it had provided £85 million (€98 million, $106 million) in financing for UK-based housing association One Housing in February.

The firm is also not the only debt provider looking to whole loan financing. Venn Partners recently told PDI it aims to raise €400 million this year from investors looking to invest in pools of Dutch residential mortgages on a whole loan basis.