14 February 2017
London
Reporter: Theo Andrew

Hermes strengthens real estate senior debt strategy


Hermes Investment Management (IM) has provided a £10.38 million loan to Compagnie Du Parc, a private real estate investment firm, to support its Last Mile portfolio of light industrial properties in Greater London.

The agreement, which works out at 65 percent loan-to-value over five years, brings Hermes IM’s total investment in the UK real estate senior debt market to £360 million, across 14 loans.

Compagnie Du Parc has completed €2 billion in transactions over 30 years of property investment. Through the loan, it will refinance its existing debt, acquire a further industrial estate and pursue new asset management initiatives.

Vincent Nobel, head of real estate debt at Hermes IM, said: “Compagnie Du Parc has a proven track record in the light industrial sector—particularly in London—where this sector is delivering great opportunities for both equity and debt. In a period of increased political change, bringing with it heightened uncertainty to some aspects of business and the economy, we look forward to continuing to construct a defensive loan portfolio by making further investments in 2017.”

Jonathan Coenca, director of Compagnie Du Parc, commented: “We are seeing unprecedented shortage of urban industrial space across Greater London. Rental values are being pushed by the increase in online sales and the London demographic trend.”

He added: “London’s greatest challenge is to welcome two million new Londoners, and Compagnie Du Parc is dedicated to deploy its expertise, capital and network to leverage this opportunity.”

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