Merseyside Pension Fund has provided a commercial property loan to an M7 project in Solihull, Birmingham (M7 REIP1V). The Fund has replaced a UK clearing bank.
The property extends to some 47 acres and is currently let to ZF (previously Lucas Industries) let on 7 leases with varying expiry dates. The site has planning for a variety of uses including residential, car showroom and retirement homes. The loan is for 40 months, whilst land sales occur as leases expire.
Mayfair Capital Investment Management acted for Merseyside Pension Fund. James Thornton, Chief Executive of Mayfair Capital commented “at this point in the cycle, given continuing risk aversion from traditional lenders commercial debt is an attractive means of generating attractive income returns in a continuing low interest rate environment.”