Investment and capex facility issued by lender

• What Citibank has issued a £99m loan secured against a UK industrial portfolio
• Why Brotherton Real Estate arranged the loan
• What next Capex facility to aid with extracting value from Titan

Pictet Alternative Advisors and Marchmont Investment Management have
secured a loan of £99m from Citibank, React News can reveal.

The investment and capex facility, which was arranged by Brotherton Real
Estate, is secured against a 16-asset industrial portfolio.

Russell Gould, co-head of commercial real estate finance at Citi, said. “We
created a bespoke financing solution around the Titan portfolio that has capacity
to grow and evolve over time as the value-add business plan is implemented.”
A joint venture between funds managed by Pictet Alternative Advisors and
Marchmont Investment Management bought the portfolio, named Titan, for
£132m in August, as revealed by React News.

Edward Jackson, principal at Pictet Alternative Advisors said: “We’re very happy
to have secured this senior facility with Citi on terms which are accretive to our
target returns and provide us with the operational flexibility to execute our
business plan.”

The multi-let nature of the portfolio provides significant scope to add value through pro-active management of the existing occupiers

TIM LUMSDON, MARCHMONT

It consists of 16 multilet industrial assets, with 127 tenants, situated throughout
the UK with opportunities for significant asset management initiatives.
Geographically London and the South East accounts for 28%, the Midlands
14%, and the North West 58%.

Tim Lumsdon, director of Marchmont said: “The multi-let nature of the portfolio
provides significant scope to add value through proactive management of the
existing occupiers. In addition, we will be physically enhancing existing assets
and developing new assets, allowing us to meet our target of delivering product
with market leading ESG credentials into supply-constrained markets. We look
forward to partnering with Citi to achieve these objectives.”

Ben Rustin, associate director at Brotherton, who brokered the deal, said: “This
was a complex deal and we are grateful to Citi for carving out a creative
financing package to support Pictet and Marchmont with their asset
management plans.”