SHC Capital has arranged a multi-stage bridging facility to support the acquisition and refurbishment of four office freeholds in the City of London, in a deal with a reported gross development value of £23m.
The real estate finance specialist said the funding was put in place for a private investment group that plans to buy, refurbish and hold the buildings as part of a wider push to expand its office portfolio.
According to SHC Capital, the borrower is part of a broader property investment company with an existing mixed-use portfolio and is targeting a significant increase in its office assets under management over the next two years.
The facility was structured in stages so that it could support the initial acquisition, continue through the refurbishment works and then move into a stabilisation phase once the scheme is completed.
The transaction involved four prime office buildings and was completed off market. SHC Capital said the assets formed part of a larger estate, adding to the complexity of the deal alongside a tight timetable and the need for a funding structure that could adapt as the project progressed.
The borrower’s redevelopment scheme has a GDV of £23m and is intended to form part of the group’s growth strategy in the London office market.
Tony Tadros, director at SHC Capital, says: “This is a first-class property investment group that’s an integral part of a wider organisation with a significant mixed-use portfolio. They have a clear, focused remit to expand their office holdings as part of their broader growth strategy.
“This transaction presented a number of complexities; the assets formed part of a much larger estate, the timeframe was compressed and we had to structure a facility that would evolve with the project’s redevelopment.
“We are delighted to have achieved a successful outcome and would like to commend Darren Smith, Partner at Glovers LLP, whose expertise and proactive approach were instrumental in ensuring the deal was delivered exactly on time.”
Darren Smith, partner at Glovers LLP, adds: “This was a complex transaction that required a swift, solution-focused approach to meet a demanding timeline. It was a pleasure working with the team at SHC Capital, as their precision was critical in ensuring the transaction completed successfully and on schedule.”
The legal work on the transaction was handled by Glovers LLP.
