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Investment manager M&G has provided a five-year loan of £140 mln (€197 mln) to Cosgrave Property Group to refinance The Liberty Shopping Centre in the town of Romford, northeast of London.

M&G has also agreed to lend an additional £13 mln for the partial redevelopment of the centre, which attracts around 20 million shoppers each year.

Romford is officially situated in the country of Essex but is also the administrative headquarters of the London borough of Havering.

Dan Riches, director of real estate finance at M&G Investments, said: ‘The Liberty Shopping Centre is a prime retail pitch and has attracted leading tenants who provide stable income. The active management of the centre and potential partial redevelopment will enable it to continue attracting leading retailers with strong leases.

‘Institutional investors are interested in real estate debt as an attractive alternative to bonds as it offers a good relative value for secured risk. The entire whole loan will be invested and held by funds managed by M&G.’

M&G’s Real Estate Finance team has invested over €5 bn in commercial mortgages in the UK and Europe and is one of the largest new lenders to emerge since the 2008 financial crisis.