The international business of Federated Hermes and Canada Pension Plan Investment Board (CPP Investments) have secured a loan facility on Wellington Place, their jointly owned business park in Leeds city centre.
The £87.8 million, five-year floating rate loan has been provided by Barings Real Estate, part of Barings LLC, one of the world’s largest diversified real estate investment managers on behalf of two institutional investors. The collateral of the financing pertains to the completed properties on the first Wellington Place Site totalling 482,587 Sq Ft. This follows the refinancing of the £200m facility at Milton Park in 2018 provided by Barings, with the same sponsorship.
Located in the West End of Leeds, Wellington Place is one of the largest urban, mixed-use commercial real estate campuses in the UK outside of central London. It is unique in its ability to provide occupiers access to both a best-in-class on-site amenity offering and key points of interest in the city including Leeds Civic Hall and City Square.
The Estate has been managed by MEPC since initial construction in 2001, benefitting from a highly experienced on-site team with an impressive track record of delivering and managing mixed-use business parks across the UK.
Chris Taylor, Head of Real Estate and Private Markets at the international business of Federated Hermes said:
“This loan is a key transaction for our Wellington Place partnership with CPPIB and is representative of the appeal of Wellington Place as an asset, the strength of MEPC as asset manager and the knowledge and experience of the partner sponsors.»
“We firmly believe in the ability of Wellington Place to deliver long-term value to investors. The support of Barings, which demonstrated its commitment as a long-term partner throughout the financing process, will allow MEPC to continue to grow Wellington Place and deliver enhanced returns on behalf of the sponsors and partners.”
James Dipple, CEO of MEPC commented:
“The new loan, along with the ongoing backing of Federated Hermes and CPPIB, will provide us with a strong foundation to manage and grow Wellington Place.»
“Our focus will now turn to further development, including upgrading local amenities such as street lighting and furniture, developing sustainable transport initiatives at the Estate, as well as seeking public art to further enhance the character of the campus, which is a truly vibrant and community-centred space in the heart of Leeds.”
Chris Bates, Head of Europe Real Estate Debt Origination at Barings said:
“We remain confident in the strength of the prime regional office market and are delighted to build on our existing relationship with Federated Hermes, CPPIB and MEPC by providing this facility secured by Wellington Place. We look forward to working together as the Estate matures over the coming years.”