M&G agrees £230m loan refinancing with Northern Trust

M&G Investments has completed a deal to refinance £230m for Trevor Hemmings’ Northern Trust Group, the Chorley-based property investment, development and land regeneration company.

The whole loan will be provided for a term of five years against assets in excess of £450m.

This deal is the refinancing of a loan provided by M&G in 2014, and remains secured against Northern Trust’s portfolio of industrial, trade and office parks, comprising over 3,600 individual units in total and its 5,000-acre land bank.

The vast majority of the portfolio is let to SMEs in the UK. The new loan includes an acquisition facility giving Northern Trust the ability to purchase new assets.

Dan Riches, director of real estate finance, M&G, said: “This new five-year commitment we have made reflects our belief in the ability of Northern Trust to continue driving strong performance from their real estate portfolio. SMEs are the backbone of the UK’s economy, employing over 15 million workers, and Northern Trust is experienced in providing premises for businesses to thrive. The real estate portfolio is underpinned by a well-diversified income stream which creates an attractive lending proposition for our clients.”

A spokesperson on behalf of Northern Trust said: “The facility contains the flexibility we require to help the continued expansion of our portfolio through the acquisition of industrial parks and development land.”