Standard Life Plc (SL/) made its first investment in commercial real estate from a U.K. debt fund set up last year to help boost the insurer’s yields.
Standard Life Investments provided 50 million pounds ($84 million) of a 143 million-pound loan secured by warehouses owned by Londonmetric Property Plc (LMP), according to Norbert Kellner, the London-based head of debt capital markets real estate at arranger Landesbank Hessen-Thueringen Girozentrale.
Banks are forming partnerships with insurers as they grapple with capital regulations that make some types of lending more expensive. They’re syndicating debt to insurers seeking assets that generate higher income than bonds, where yields are near record lows.
“Our intention is to do deals like this more often all over Europe,” said Helaba’s Kellner in a telephone interview.
Standard Life, based in Edinburgh, appointed Neil Odom-Haslett last year to be head of commercial real estate lending as it set up a 250 million-pound fund to invest in senior secured U.K. commercial real estate loans.
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