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Barclays Bank wins loan financing mandate for Oaktree Capital

Barclays Bank has won the £335m whole loan financing mandate for Oaktree Capital Management and Patrizia Immobilien’s joint acquisition of the three-strong MEPC UK business parks portfolio.

Oaktree, which is the majority equity investor with at least 90% of the joint venture share, has selected Barclays after a competitive financing process which included a number of investment bank underbidders including Citigroup, Deutsche Bank and Bank of America Merrill Lynch.

The three regional business parks are spread over 4m sq.ft of mixed-use space leased to 510 tenants.

  • The 2m sq ft Hillington Park in Glasgow
  • The 1.2m sq ft Birchwood Park in Warrington, 20 miles east of Liverpool, 20 miles east of Liverpool
  • The 820,000 sq.ft Chineham Park in Basingstoke, 17 miles south west of Reading, which includes MEPC as a tenant.

Oaktree and Patrizia confirmed the closure of the initial all-cash acquisition on Monday, reflecting a net initial yield of 7.3%, while the debt refinancing is scheduled for 25th September,  one week after the Scottish referendum which potentially represents a currency risk in the event of a break-up of the UK.

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