MetLife, the US insurance company, has today funded a five-year £160m senior loan for the TPG-managed Ivanhoé Cambridge’s acquisition of Woolgate Exchange in the City of London for £265m, CoStar News has learned.
Ivanhoé Cambridge, the real estate subsidiary of Canadian institutional fund manager Caisse de dépôt et placement du Québec, secured the senior debt facility at the beginning of December, also revealed by CoStar News, which is thought to be priced at around 275 basis points over three-month LIBOR. The LTV is 60.4%.
TPG sourced Ivanhoé for the deal, while Eastdil Secured, a subsidiary of Wells Fargo, arranged the financing.
Today’s funding will prompt the full repayment to bondholders of the outstanding Credit Suisse-issued Cornerstone Titan 2006-1 CMBS loan, the outstanding securitised £224.38m Woolgate loan, in time for the 23 January interest payment date (IPD).
Ivanhoé Cambridge’s acquisition of the 340,000 sq ft trophy asset, at 25 Basinghall Street, has been convoluted.
Previous owner D2 Private, the Irish investor, bought the City of London office block from Hamburg-based investment bank Bankhaus Woelbern in early 2006 for £325m and was unable to repay the balance of the senior and junior loan at maturity in July 2011.
Cheyne Capital Management, one of the principal CMBS bondholders in the Cornerstone Titan CMBS, bought the B-Loan and sold it to TPG, which then purchased Woolgate Exchange in a segregated account on behalf of Ivanhoé Cambridge.
Almost a year ago last February, Maylasian pension fund Permodalan Nasional Bhd (PNB) was under offer to buy Woolgate Exchange, but the sovereign wealth fund’s conservative view over the covenant strength of the majority lease to West LB, scuppered the deal.
MetLife has closed a number of “big ticket” UK senior loans last year, including a £169m five-year senior loan for Hines, the global real estate developer, and HSBC Alternative Investments’ joint venture £290m acquisition of the Broadgate West office development complex in the City of London.
All parties declined to comment.