Advising Canada Life Asset Management on £148m debt financing loan

We have advised Canada Life Asset Management on a £148 million loan to LXi REIT plc, a specialist long income real estate investment trust.

With this loan LXi REIT will refinance a mixed-use, UK regional portfolio of commercial property assets, typically let on inflation-linked, long-term leases, providing a diversified, secure income profile, on behalf of Canada Life’s annuity business. The loan has been provided at an LTV of 40% and is over a 16-year term, maturing in 2039.

Canada Life Asset Management’s property lending business has a 30-year track record within the UK and has further expanded its lending ambitions in recent years, as it continues to grow its loan book. Last year we advised the company on a £101.15 million loan to PATRIZIA AG, a leading partner for global real assets, for a fund it manages on behalf of a South Korean pension fund.

Commenting on the transaction, Real Estate Partner Emma Oakley, said: “With this loan, Canada Life Asset Management continues to demonstrate the business’ strong market position. It has been great to work with Nicholas and the team again on establishing this new long-term relationship with LXi. We look forward to working together again and providing legal expertise to support their expansion and diversification goals.”

Nicholas Bent, Head of Real Estate Finance, Canada Life Asset Management, said: “Despite uncertainty in the property market and wider economy, this significant long-term refinancing demonstrates our continued ambition to expand and diversify our commercial loan book by partnering with responsible investors and proven real estate specialists such as LXi.”

“Taylor Wessing has a strong reputation in the market and has delivered excellent results in the past, so we were delighted to work together again. Their dedication to client service is evident from the support they provide to how they navigate even the most complex aspects of the transaction."

The transaction was led by partner Emma Oakley in the Real Estate team and Edward Manser in the Banking and Finance team with support from senior associates Daniel O'Brien in the Real Estate team and associate Olivia Briggs in the Banking and Finance team.

Further support was provided by:

Banking and Finance

Trainee solicitor Ella Bazini and paralegal Andrea Marotti

Construction Team

Partner Matthew Jones and associate Emma Coates

Corporate Real Estate Team

Senior associate Steph Hobbs

Real Estate Team

Senior associates Chris Komodromou, Rebecca Miller, Rachel Kingston, and Marcus Diviney, associates Francesca Gibbs, Charlie Marshall and Esme Moss and trainee solicitor Michael Fitzpatrick

Planning Team

Partner Emma Tait and associate Anna-Mariya Angelinova

Tax and Incentives Team

Partner Peter Jackson and associate Joe Fallon