Schroders Capital's Real Estate Debt team makes £33m UK Senior Loan

Schroders Capital today announces it has made a £33 million loan to re-finance a purpose-built retail centre in St Albans.

The three-year loan facility has been agreed with Boultbee LDN Investment, an experienced real estate investor and developer, which has owned The Maltings, an open shopping centre, since 2003. Boultbee were advised by Bircroft Private.

The loan includes a specific ESG related capex programme, designed to support stakeholders’ ESG focus, while also ensuring the continued success of the asset as a central part of, and contributor to, the local community in St Albans.

Schroders Capital’s Real Estate Debt team is targeting to raise £1 billion this year, from UK pension schemes and Local Authorities for its UK Senior Loan fund.

The UK Senior Loan fund targets a gross return of 6.5% by directly originating loans between £15m-£100m in the UK mid-market across all real estate sectors. The team is building a diversified portfolio of loans designed to deliver attractive risk-adjusted returns, combined with the downside protection offered by secured lending against commercial real estate.

The Schroders Capital Real Estate Debt platform offers separate UK and European Investment Grade and Senior Loan funds, as well as a combined UK and European High Yield fund.

The strategies are designed to meet investors’ growing demand for private debt alternatives which aim to offer enhanced and differentiated sources of return. They are overseen by Natalie Howard, Schroders Capital’s Head of Real Estate Debt.

Kristina Foster, Fund Manager, Schroders Capital, commented:

“Boultbee LDN has a deep knowledge of the centre and its tenants, as well as the site’s importance within the city from a retail perspective.

"Furthermore, Boultbee’s focus on the importance of ESG and recognition that it is one of the biggest challenges facing UK real estate absolutely chimes with our own perspective.

“Together we view ESG improvements as an essential risk mitigant as the bar from governments, operators and tenants continues to rise. We believe that the UK real estate market can make a significant contribution to environmental improvements.

“We continue to see a funding gap in the UK market place with borrowers finding capital hard to find. The Maltings is a strong retail asset with a long-term owner and we are delighted to announce this loan which is the first for our growing platform.”

Simon Hosking, Managing Director Boultbee LDN, commented:

‘’It has been an absolute pleasure to work with the team at Schroders Capital & Bircroft on this transaction that was completed in a timely manner. Most impressive and a huge credit to both teams.

“The Maltings is a privately owned retail asset that has emerged strongly from the pandemic and continues to buck trends, trading at 99% occupancy. We are delighted to partner with Schroders Capital on this transaction, a relationship we very much look forward to building upon.

“The Maltings comprises 300,000 sq ft of retail, office and other commercial accommodation let to around 100 occupiers, including Sports Direct, TK Maxx, Wilko and H&M, plus 31 long leasehold residential units and an 800-space car parking operation, all on a six-acre site in the heart of the city.”

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