Barings secures €287m mandate to invest in U.K. real estate debt from Phoenix Group

Barings has secured a new £250 million (€287 million/$343 million) real estate debt mandate with The Phoenix Group, the United Kingdom’s largest long-term savings and retirement business provider, for its matching adjustment portfolio.

In partnership with Phoenix, Barings will build a portfolio of investment-grade buy-and-hold U.K. commercial mortgage loan assets across a range of commercial property sectors, including industrial, residential and office, diversified across Greater London and regional locations. The facilities will have a term of between five and 50 years, and Phoenix will look to match the cash flows and duration of the assets against the profile of its annuity liabilities.

Barings has already agreed its first deal for the new mandate, a £30 million (€34.5 million/$41.2 million) first mortgage loan on a 30-year term secured against a mixed-use office and retail property on Tottenham Court Road in London, with a loan-to-value below 50 percent.