LONDON—Wells Fargo & Company has provided around $363 million (£220 million) in financing for Threadneedle Investments, a leading international investment manager, to help refinance all three existing loan facilities within its Strategic Property Fund IV. The Fund consists of 19 commercial real estate assets located across the UK, including retail warehousing, office and industrial properties, and a portfolio of approximately 120 retail bank branches.

“Wells Fargo is delighted to continue our relationship with Threadneedle through the refinancing of the Strategic Property Fund IV,” said Richard Craddock, a director in Wells Fargo's UK Commercial Real Estate team. “We have worked with Threadneedle and its US parent company, Ameriprise Financial, for many years now and this was an opportunity to continue our support for this Fund as we look to continue growing our commercial real estate business in the UK.”

The UK Commercial Real Estate team initially provided financing for two of the three existing loans within the Fund at its inception in 2009. Wells Fargo acquired the loans when it took over the Eurohypo UK platform and loan book. The term of the refinancing is intended to match the closed-ended Fund's life and thus will enable Threadneedle to maximize returns to investors as it continues to assess its asset management strategy for the portfolio.

Michael Acratopulo, managing director and deputy head of Wells Fargo's UK Commercial Real Estate business, added: “We were pleased to both increase and extend our existing commitments to Threadneedle's Strategic Property Fund IV. This is consistent with Wells Fargo's desire to develop and grow its relationships with top tier UK real estate investors and to seek to retain, where possible, our current loan facilities as they come to maturity.”

“Threadneedle Strategic Property Fund IV is the largest fund within our closed-end leveraged UK real estate fund range and it has provided investors with highly diversified exposure to the UK commercial property market, whilst delivering strong investment returns,” said John Willcock, finance and commercial director of Threadneedle Property Investments Limited. “The conclusion of this new £220 million loan facility provides the Fund with future financing, whilst incorporating the required flexibility and commercial terms to enable the Fund to conclude its investment strategy over the duration of its remaining term. We are pleased to have worked closely with Wells Fargo and its UK commercial real estate team throughout the process and look forward to developing our relationship further in the future.”

Wells Fargo's primary European business lines include Global Financial Institutions, Global Banking, Global Transaction Banking, Capital Finance, Commercial Real Estate, Corporate Trust, Asset Management and Investment Banking and Capital Markets.

Instant Insights /

Wells Fargo Funds Threadneedle's New UK Fund to the Tune of $363M

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