Legal & General Property and Australia’s Goodman Group have completed a £350m equity raising for property fund Arlington Business Park Partnership.

The move, funded by existing investors, is intended to strengthen the fund’s banking position and maintain levels of liquidity through the property market downturn.

The partners have also agreed with lenders to the fund to relax debt covenants within existing facilities.

The capital raising is being carried out mainly through an asset-for-equity swap, which will see a portfolio of debt-free properties injected into the fund.

Although the fund has not breached its banking covenants, there was the risk this could happen if property prices continued to slide this year.

Financial Times