Deutsche Pfandbriefbank (PBB) has funded a five-year £47.5m senior loan to finance Almacantar’s £112m acquisition 125 Shaftesbury Avenue from BlackRock UK Property Fund.
The £47.5m reflects a LTV of just 42.4% for the Almacantar acquisition, which is thought to be priced in the low 200 basis points range, with the relatively modest leverage a function of the assets short income.
PBB funded the loan last Friday.
Charles Balch, head of real estate finance international, UK and CEE at PBB, said: “The transaction is our second deal together [with Almacantar] and shows our commitment to this existing client in the expansion of their portfolio. Equally, it is further evidence of the Bank’s ability to finance strong management teams on active management assets and strategies.”
Almacantar’s asset management plan is to re-gear the asset, in line with lease expiries, with the potential for some conversion to residential in the medium term.
125 Shaftesbury Avenue is Almacantar’s fourth major purchase in the West End and lies close to London landmarks including the Royal Opera House and Covent Garden Piazza.
The red brick building was built in 1982 and provides covers a site area of approximately 1.2 acres in Soho close to Cambridge Circus, comprising 190,000 sq ft of office, retail and ancillary accommodation arranged over basement, ground and nine upper levels.
The property is located 100m south of Tottenham Court Road and will benefit from the anticipated positive impact of Crossrail when completed.
Jonathan Paul, finance director of Almacantar, said: “We are delighted to have further cemented the relationship with Deutsche Pfandbriefbank through the acquisition of 125 Shaftesbury Avenue which represents an excellent addition to our portfolio in a part of the West End that is transforming rapidly.”
On Monday, Almacantar announced it had taken full ownership of the iconic Centre Point tower in London’s West End after buying Frogmore’s 25% stake for an undisclosed price.
Almacantar and Frogmore signed the original joint venture agreement for the scheme in 2011.
Almacantar and Frogmore’s revised plans for a £350m regeneration of Centre Point gained consent in July.