Tribeca’s LBBW-led Oxford Street block cash-out refi crystallises at least £75m in profit

Tribeca Holdings has refinanced the prime retail block opposite Selfridges at 431-451 Oxford Street with a £227.5m six year whole loan provided by LBBW and TH Real Estate, in a cash-out refi which crystallising at least £75m in profit.

LBBW logoRothschild was enlisted to secure either a sale or a refinancing of the office block bought for £127m in January 2014 and £136m after costs.

LBBW provided a £160m senior loan, reflecting a circa 49% LTV, while TH Real Estate, on behalf of its US based parent, TIAA-CREF, provided a £67.5m junior loan at 70% LTV.

This implies a valuation of the 60,521 sq ft retail block in Oxford Circus of £325m, reflecting capital appreciation of 156% in just less than two years.

The previous financing comprised a £95m three-year facility from Crédit Agricole which included a £15m capex facility. Pramerica also invested in a preferred equity interest, the size of which was undisclosed.

This “cash-out” refinancing allows Tribeca to repay Crédit Agricole and Pramerica and crystallise at least £76.5m profit or more depending on how much equity Pramerica had in the previous capital structure.

Tribeca Holdings, founded by Aiden Brooks, has reportedly undertaken a circa $500m divestment of US commercial properties to fund acquisitions in London prime retail this year, including acquiring stakes in assets Bond Street, Knightsbridge and Old Spitalfield’s Market.

Brooks’ Tribeca Holdings has extensively refurbished the property, materially improving income and tenant quality through repositioning the asset to upmarket tenants, including re-gears on 15-year leases, such as to Watches of Switzerland, Omega, Ecco, Dyson and Tesla.

LBBW acted as lead arranger for the six-year facility.

CoStar News understands that the LBBW senior loan was priced at sub 150 basis points and the TH Real Estate junior loan was priced at 6%.

For LBBW, this is the last transaction of the year after a strong year from the German bank in the UK which is believed to have deployed in excess of £1bn in UK senior CRE financings. In January, LBBW provided a 50% share of a£325m loan to refinance Sea Containers House on London’s South Bank.

Simon Marshall, head of UK real estate at LBBW, said: “This transaction fits perfectly with LBBW’s real estate lending strategy to provide senior debt to experienced investors for the acquisition or refinancing of core commercial real estate let to strong tenants.”

Shawn Kaufman, director of debt strategies at TH Real Estate, adds: “This transaction showcases the flexibility of TIAA-CREF’s loan offering for high quality assets. We were delighted to deploy our first junior loan facility in the UK to a top UK retail specialist and provide an extremely efficient capital structure in conjunction with our co-lender, LBBW.”

Michael Weir, relationship director at LBBW, states: “The relationship with TH Real Estate enabled us to provide a structure that efficiently met the financing requirements of our joint client, Tribeca Holdings.”

The £227.5m facility refinances a £95m three-year Crédit Agricole CIB senior loan which included a £15m capex facility. In the previous financing, Pramerica retained a preferred equity interest.

TIAA-CREF served as a co-arranger while Rothchild acted as financial adviser to Tribeca Holdings.

About CoStar News

Finance Editor, CoStar News
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