GIC Invests in 1 Billion Pound Mortgage Program, Laxfield Says

Government of Singapore Investment Corp. invested in a mortgage program that will provide loans for commercial property in the U.K., Laxfield Capital said.

The lending program will invest as much as 1 billion pounds ($1.6 billion) over the next 24 months, Laxfield, a London-based mortgage company, said in a statement on its website. GIC, the Singapore sovereign wealth fund managing more than $100 billion of the city’s reserves, confirmed the investment in an e-mail and declined to disclose the amount of the funds injected.

Real estate investments accounted for 10 percent of GIC’s portfolio as of March 2012, unchanged from the previous year, the state fund said in its latest annual review, published in July. Property investments are “part of the diversified portfolio that GIC manages and serves as a good hedge against inflation,” according to a recent statement.

The Laxfield program “complements our existing direct junior debt investment strategy which we will continue to pursue,” Chris Morrish, regional head of Europe at GIC Real Estate said in the statement.

The program will provide loans between 40 million pounds and 185 million pounds with duration of five to seven years for commercial properties including office, residential and retail, Laxfield said. The program will also seek joint investments with other lenders where GIC will retain “a substantial junior investment in each loan,” according to the statement.

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