BNP Paribas funds £115.5m seven-year loan for Tishman Speyer’s The Point acquisition

BNP Paribas Corporate and Investment Bank has today closed the seven-year £115.5m acquisition finance for Tishman Speyer’s purchase of The Point, in the global developer and investor’s second UK acquisition of the year.

BNP C&I logoWest End of London Property Unit Trust (WELPUT) and Hermes Real Estate sold the 236,000 sq ft prime office building in Paddington to Tishman in mid-July for £210m, implying BNP Paribas’ senior loan reflects 55% LTV.

BNP Paribas acted as sole arranger on the financing and provided the loan for a seven-year term.

The Point, situated directly opposite Paddington Station and adjacent to the Grand Union Canal, was developed in 2003 and designed by Farrells. Occupiers include Everything Everywhere, Cerner, A2Dominion Housing Group, CH2MHill United Kingdom and CB&I UK.

WELPUT, advised by Grafton Advisors and managed by Schroder Property, and Hermes bought the Point for £125m from Chelsfield in late 2004.  In the six months from the end of September 2013 to the end of March 2014, The Point increased in value by £30m to £210m, according to an external valuation by CBRE.

The fully-leased 11-floor prime property is known for its distinctive design resembling a ship’s prow, features floor plates of up to 23,000 sq ft.  It sits beside the Grand Union Canal within the Paddington Basin redevelopment area, close to Paddington Station and two pedestrian bridges. Paddington will serve as a major Crossrail hub, increasing its appeal to future tenants.

The Point is Tishman Speyer’s second London acquisition in 2014, after acquiring the Sainsbury’s UK headquarters at 33 Holborn in a joint venture led by Gingko Tree Investments for £310m in April, fending off underbidder Cathay Life, one of Taiwan’s largest insurance firms.

Tishman Speyer, which has invested approximately $4.5bn in nearly 5m sq ft of properties over nearly 20 years, also owns Sanctuary Buildings and Eland House for which planning consent was recently obtained for a major redevelopment that will deliver 320,000 sq ft in early 2016.

“We have a very positive long-term view of the London office market and we are continuing to seek both development and acquisition opportunities accordingly,” said Tishman Speyer co-CEOs Jerry Speyer and Rob Speyer in a statement when the acquisition was announced last month. “The Point is an excellent addition to our portfolio.”

Dan Nicholson, managing director in charge of Tishman Speyer’s UK platform, added: “This first-class property is perfectly situated to benefit from the opening of Crossrail. Demand is very heavy for such strategically-located assets and we are pleased to have secured such an investment.”

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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