M&G Investments writes loan to Goldman Sachs property JV

Business loanThe past decade has seen asset managers become alternative sources of debt finance as banks retreated from the market – and now M&G Investments has made a large loan to a joint venture that includes Goldman Sachs.

The fund manager has provided a £69.1 million (€78.5 million) loan to Goldman Sachs and Greycoat for an office refurbishment in central London.

M&G Investments is one of the largest new lenders to emerge since the 2008 financial crisis, according to the firm. Since 2008 banks have created a ‘lending vacuum’ by slashing their lending volumes and loans have formed a new asset class for investment managers.

Part of the loan to the joint venture covers the refinancing costs of acquiring the property as well as the refurbishment.

The entire three-year loan is invested and held by funds managed by M&G.

Dan Riches, real estate finance director at M&G Investments, said the firm committed over £1.2 billion of investments across Europe last year as institutional investors sought exposure to commercial real estate debt.

M&G’s real estate finance team had invested over £8.3 billion in commercial mortgages (as at December 31, 2018) in the UK and Europe. 

“The UK, and in particular, London, continues to offer strong relative value and we continue to see a considerable pipeline of opportunities in this space,” said Riches.

Procession House, the office being refurbished, comprises over 100,000 square feet of office and retail space on top of the City Thameslink station, and is described as an attractive central London office location for occupiers.

Planning permission is already in place and the refurbishment is underway and due to complete in early 2020.

©2019 funds europe

Thought leadership


This whitepaper outlines key challenges impeding the growth of private markets and explores how technological innovation, when bolstered by the operational experience and global reach of FMIs, can provide solutions to unlock access to private market funds for a growing investor base.


Transporting goods by sea is the lowest carbon way of transporting goods. That said, the shipping sector contribute 3% of global carbon emissions, so we need it to get to net zero. Breakthrough technologies have the power to reshape the industry and drastically reduce its environmental footprint.



We often hear about the challenges related to sustainability data - in particular, the lack of consistency, comparability, and completeness. Update your information puzzle with Essential Sustainability Intelligence.


Discover how investing in real assets with a multi-asset approach can help build resilient portfolios.


Executive Video Interviews

Why fund admin tech is a key competitive advantage

Cian Hyland, Strategic Client Relationship Director at Deep Pool Financial Solutions spoke to us about how technology enables efficient data management, reporting automation and secure data access.

Insights from State Street

Cuan Coulter, Global Head of Asset Managers and Head of UK and Ireland at State Street, discusses how fund managers decide between the two cross-border fund domiciles, namely Ireland and Luxembourg, and why asset managers find managing data so difficult.

Unlocking access to private markets

Vincent Clause, who heads the global funds strategy at Euroclear and David Genn, CEO of Goji, sit down with Funds Europe to explain how technological innovation, bolstered by operational experience and global reach, can provide solutions that unlock access to private markets.

Sustainable investing in the DC world

Claire Felgate, a specialist in UK defined contribution pension schemes at asset manager BlackRock, talks with Funds Europe editor Nick Fitzpatrick about how - and the pace at which - DC pension schemes are adapting to the requirements of sustainable investment.



Join our webinar for a deep dive into the findings of the fresh-off-the-press EU Taxonomy 2023 Insights Report, based on Clarity AI's best-in-class coverage of EU Taxonomy reported data and CDP industry-leading environmental datasets. 

In this webinar, we discuss tools for optimising fund data management and distribution, the role of global fund classifications and ratings, and how technology and automation enhance data integrity and insights.