Canada Life Investments can announce that it has recently completed a £40m, fixed-rate loan transaction with Empiric Student Property.
The loan, secured against four forward committed assets that are expected to be completed in time for the 2016/17 academic year, has a loan-to-value of 50% and will be repayable in two £20m tranches in 2024 and 2031.
This is the second loan that Canada Life Investments has provided to Empiric, bringing the total combined loan to the student accommodation investor to £71m. In May 2015 Canada Life Investments provided Empiric with £31m 15-year fixed-rate loan facility secured against eight assets.
Nicholas Bent, Head of Real Estate Finance at Canada Life Investments, said: “We are pleased to be able to provide this second loan facility to Empiric Student Property. The high calibre of their investments and the solid outlook for the student accommodation sector allowed us to tailor the loan to support the borrower’s investment strategy. This builds on our existing relationship with Empiric and is a demonstration of our commitment to the market. We are looking to expand our loan book by adding established borrowers who require longer-term debt secured by good quality commercial property.”