L&G agrees new £400m RCF for industrial property fund

Written by Michael Griffiths

23/06/2025

Legal & General (L&G) has announced a newly agreed £400m revolving credit facility (RCF) to refinance its Industrial Property Investment Fund (IPIF).

The funding will be provided by a syndicate of lenders – including Lloyds Bank, RBS International and Banco Santander – with the termination date of the facility extended from 2025 to 2028.

The move increases L&G’s funding capacity from its previous £350m facility and the group could also extend the facility to £500m, subject to lender support.

Valued at over £3bn in gross asset value, L&G’s IPIF specialises in a diversified selection of multi-let industrial assets, primarily in London and the South East of England to satisfy areas of high occupier demand.

Senior fund manager of the IPIF at L&G, Jonathan Holland, said: “The announcement of the increased credit commitment to IPIF signals the strength of the fund’s offering and financial positioning in delivering its strategy and growth ambitions in the industrial real estate sector.

“We are dedicated to investing in high quality, well performing assets, which offer strong returns from increased rental growth as demand in the sector continues to rise. Benefitting from the additional flexibility provided by the credit line, the fund is set to realise its ambitions by continuing to apply a long-term approach to our portfolio formation.”

A statement from Lloyds Bank, on behalf of the lending syndicate, added: “We are proud to have played a key role in supporting L&G on this refinancing by coordinating the financing process and working closely with the syndicate to deliver a solution aligned with IPIF’s long-term objectives.

“This transaction not only strengthens our ongoing relationship with L&G, but also provides IPIF with enhanced flexibility to support its next phase of strategic growth.”

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