The pair are equal partners on the deal and LendInvest will act as security trustee and loan servicer.
The deal is one of the alternative lender’s largest loans to date and marks the beginning of a strategy to provide larger loans to established borrowers investing in and developing property around the UK.
The loan was made to an established property development company to finance the purchase of a strategic development site in London’s Docklands. The borrower is seeking planning consent to build a 320 bedroom budget hotel and 199 residential units – a decision is expected during 2017.
Rod Lockhart, managing director of LendInvest Capital, said: “We are delighted to be working with major public sector institutions like MPF, which is something that we have built LendInvest to do successfully.
“Returns from short-term property debt are increasingly attractive to investors in this low interest rate environment. We look forward to making co-investments with MPF and other UK pension funds as a regular component of our funding mix.”
Chris Shorrock of CBRE Capital Advisors, the strategic adviser to MPF, added: “At the current time we believe that investing into the property debt space provides attractive relative returns compared to direct equity property investments.
“We are pleased to have undertaken our first debt syndication with LendInvest and it demonstrates that alternative lenders and institutional investors can team up to achieve attractive returns for their investors.”
LendInvest has provided over £850m of short-term project finance to UK landlords, investors and developers since 2008 and now manages over £385m on behalf of private clients, wealth managers, family offices and institutions.
The lender’s funding mix comes from its online lending platform, its own funds plus institutional investors and banks. In December, CIO Iain Thomas told SLS it is determined to pursue further growth in 2017.