M&G Real Estate Finance has announced £200 million in prime refinancing deals across the resilient UK logistics and retail warehousing sectors. The company is capitalising on robust tenant and investor demand, driven by constrained supply in key markets.
One of the deals includes a £50 million construction loan (72.5% LTV) to PineBridge Benson Elliot, aimed at developing two prime logistics assets in Woodford and Enfield, North London. Both sites have received planning consent for seven warehouse units, delivering 175,000 sq ft of high-quality speculative space with strong environmental credentials. Completion is expected within 18 months. London continues to experience a shortage of Grade A logistics space, with vacancy rates currently at 5%, highlighting the strong demand for premium assets that meet modern market standards.
In a separate deal, M&G is providing MetroBox—a joint venture between Delancey and Tritax—with a £150 million refinancing loan (53% LTV) to replace an existing debt facility. This loan is secured against four prime retail warehouses in Guildford, Crawley, Luton, and Solihull, all of which are fully let to prominent tenants such as Next, B&Q, and Marks & Spencer. The retail warehousing sector is also experiencing record-low vacancy rates, with the current rate at around 4.6% nationwide and 4.4% recorded in July—the lowest since 2017.
These deals highlight M&G’s ability to originate large-scale loans independently, without relying on third-party syndication. The assets secured by these loans showcase M&G’s expertise in underwriting investment-grade properties with positive credit profiles and growth potential.
Dan Riches, Head of Real Estate Finance at M&G Real Estate, commented: “We remain committed to financing prime logistics and retail warehousing assets in strategic UK and European locations that meet the evolving needs of modern businesses. With e-commerce and manufacturing growth driving demand for Grade A logistics space, we continue to invest on behalf of our clients in well-located, high-quality assets.”
George MacKinnon, Managing Director at PineBridge, added: “We are thrilled to have secured this financing with M&G, which enables the development of two sustainable, high-quality urban logistics assets in key London sub-markets where such facilities are in high demand.”
A spokesperson from MetroBox also remarked: “Despite uncertainties in the debt market, we saw significant lender interest during this refinancing exercise. It’s been a pleasure working with M&G, whose competitive terms reflect the strong asset management success of our joint venture with Delancey and Tritax.”
M&G’s £73 billion Private Markets division, which includes one of the world’s largest real estate investors, manages more than £40 billion in assets. Established in 2009, M&G’s Real Estate Finance team has deployed over £13 billion across the UK and Europe, investing on behalf of over 100 institutional investors globally.
Building, Design & Construction Magazine | The Choice of Industry Professionals
