Tishman Speyer Properties has financed its £130m acquisition of 100 New Oxford Street with a two-tranche £90.4m six-year loan from BNP Paribas Corporate and Institutional Banking.
Hermes Real Estate and Canada Pension Plan Investment Board sold the 103,500sq ft office and retail property form their London office joint venture in January, following the completion of refurbishment of three floors.
BNP Paribas’ loan is comprised of a £85.4m senior loan, reflecting 65.7% LTV, and an addition £5m to cover costs while the property’s existing vacancy is leased up. The facility will have a maximum term of six years.
100 New Oxford Street is currently 50% leased, which will be reflected in BNP Paribas’ loan terms, with a likely declining margin in line with meeting occupancy hurdles.
Tishman Speyer acquired the property on behalf of its new European Value-Added Fund, TSEV VII, and is the firm’s third central London acquisition in recent months following the acquisition of Sainsbury’s headquarters at 33 Holborn and The Point office building in Paddington.
The property is close to the Tottenham Court Road underground station which will, in 2018, feature Crossrail access, and includes six floors of modern office space and ground level retail.
Refurbishment of floors three to six has been completed and the majority of the space has been let. Work on the first and second floors is currently under way.
“Demand for first-class office space in the world’s great cities continues to grow,” said Tishman Speyer co-CEOs Jerry Speyer and Rob Speyer in a statement at the time of the purchase in early January.
“We endeavor to meet that demand via ground-up development and selective acquisitions of existing properties. We continue to have a very positive long-term view of the London office market and look forward to the possibility of expanding our presence further.”
Dan Nicholson, who heads Tishman Speyer’s UK platform, added, “With the recent and current renovations, this property will offer an excellent option for tenants seeking superior space in a prime location. We look forward to taking advantage of the opportunity to meet the local market need for such space.”
Talent agent William Morris Endeavor and Weve, a mobile marketing company, are tenants in the building.