Redevco has completed its first financing transaction through its new real estate debt platform, with a loan of £47.5 million (equivalent to €56.8 million). This investment marks the start of lending activity by the real estate manager, one of Europe's largest private real estate managers, as part of its diversification strategy.
The loan will be used for the acquisition and refurbishment of a 5,202 sqm office building at 10 Salisbury Square in the City of London. The project is led by Original Works, a platform promoted by Invesco Real Estate, with assets under management of £65.5 billion, together with Simten. The transaction has been managed by Brotherton Real Estate.
The scheme involves the refurbishment and extension of the property into a Grade A office building with high sustainability standards, including EPC A rating and BREEAM Outstanding certification. The loan is structured as a green loan, following the principles for Green Loans of the Loan Market Association (LMA).
From Original Works, Mike Rayner, head of real estate debt at Redevco, said the loan ‘provides a tailored financing solution to execute our plans at 10 Salisbury Square’, while Ben Rustin, director at Brotherton Real Estate, noted that ‘the limited supply of sustainable offices in central locations is putting pressure on rents, making this type of asset an attractive proposition for funders’.
The financing was advised by Brotherton Real Estate, Burges Salmon and Herbert Smith Freehills on behalf of Original Works, and Stephenson Harwood and Knight Frank on behalf of Redevco.
