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Threadneedle seals £130m of debt from Eurohypo and RBS for latest fund

UK asset manager Threadneedle has secured a debt facility from two banks for its open-ended property fund.

Threadneedle, a UK asset manager, has struck an agreement for a debt facility with Germany’s Eurohypo, Europe’s largest commercial real estate bank, and the recently nationalised Royal Bank of Scotland.

Eurohypo said in a statement that it had signed an acquisition facility with Threadneedle for its incoming Strategic Property Fund IV LP, to pursue UK-wide opportunities as part of the manager's core-plus investment strategy.

The bank added that it had acted as agent and co-underwriter on a 50,50 basis with Royal Bank of Scotland to provide a £130m (€90 million; $130 million, 5-year debt facility.

Dan Smith, a director in Eurohypo’s origination team said the financing reflected “continuing appetite for new lending”  in the UK market, with “proven partners.”

Threadneedle’s Strategic Fund IV is the third fund the firm has launched within the last year. It is aiming for £350 million of equity with a cap of £400m.