The North West Evergreen Fund has sold a portfolio of four real estate loans worth £30m to the Greater Manchester Pension Fund, which Evergreen said would allow it to increase capacity for future projects.
The high-performing loans have been sold ahead of maturity, at face value. The recipients will now repay their loans directly to the GM Pension Fund, under the same terms as agreed with Evergreen.
The deal was structured by CBRE’s investment advisory team, part of CBRE Capital Advisors.
The four projects that the debt relates to are:
- Tomorrow, a 54,000 sq ft office and 112-bedroom hotel at MediaCityUK, developed by Peel Media
- No1 Spinningfields, the 260,000 sq ft office under construction by Allied London in Manchester
- 1 City Place, Muse Developments’ completed 70,000 sq ft office in Chester
- Nikal and Abstract Securities’ 400,000 sq ft Soapworks in Salford Quays
The North West Evergreen Fund, which is made up of 16 local authority limited partners, and was established to provide funding to support real estate projects. It is funded through the European Regional Development Fund and other public money allocated under the Joint European Support for Sustainable Investment in City Areas initiative.
Cllr Kieran Quinn, chairman of the Greater Manchester Pension Fund, said: “This purchase of the evergreen loan portfolio is yet another example of GMPF’s twin track approach to investments. These loans have enabled some of the region’s most iconic properties to be developed and so, as well as securing the retirement savings of our members, this purchase has extracted a huge social benefit for the North West.”
Tony Martin, head of investment advisory at CBRE, said: “Evergreen was established to provide developers with an opportunity to secure much needed finance for strategic sites that will make a significant contribution to the economic growth of the North West of England. Supported by the Government’s commitment to invest in the ‘Northern Powerhouse’, the need for development funding for employment schemes is accelerating. By transferring this latest portfolio, we were able to release valuable capital which can be allocated to the next projects.
“Since we established the fund, we have committed close to £100m to local employment schemes. This supports our ongoing strategy to put money back into the region and reinvest in economic growth projects in the North West.”