Great Portland Estates has arranged a new £90m five year non-recourse loan with Royal Bank of Scotland and Crédit Agricole CIB for The Great Ropemaker Partnership (GRP).
CoStar News understands that the margin was 125 basis points over three-month LIBOR, significantly below the 240 bps margin for the existing £73m RBS loan arranged in 2011.
The new loan is secured on GRP’s long leasehold interests at 200 & 214 Gray’s Inn Road, London WC1, and has an initial loan to value of approximately 41%, imply a combined value of £219.5m.
The all-in coupon is 2.67%, significantly below the 4.52% coupon of the previous loan. The new loan has no scheduled amortisation and expires in December 2020.
Crédit Agricole CIB acted as facility and security agent and RBS as documentation agent.
GRP, a 50:50 joint venture formed in March 2008 between GPE and BP Pension Fund’s Ropemaker Properties, acquired 200 & 214 Gray’s Inn Road from affiliate of Beacon Capital for £132.75m in October 2011. GPE manages GRP and its share of the debt liability is an even £45m.
200 Gray’s Inn Road is a 10-storey, 246,500 sq ft grade A office that offers highly specified and efficient office space. 214 Gray’s Inn Road comprises 45,500 sq ft of predominately car parking and back up accommodation for 200 Gray’s Inn Road mainly let to ITN until 2023 at a rent of £500,000 per annum. It is held long leasehold expiring June 2174 at a peppercorn rent.
Nick Sanderson, GPE’s Finance Director said: “We are pleased to have arranged this attractively priced loan for GRP with counterparties of the quality of RBS and Crédit Agricole CIB. This financing both reduces our finance costs and enhances our debt maturity profile.”
Jon Feast, Director, Real Estate Finance, RBS said: “We are delighted to continue to provide financing for this prime London asset and to support our longstanding customer, Great Portland Estates plc.”
Anne Toledano, Head of Real Estate and Hotel Group UK, Crédit Agricole CIB added, “We are very pleased to lend against this landmark, multi-let office building, ideally located within the Midtown market between Kings Cross, Clerkenwell and Holborn. This loan illustrates well the development of our relationship with Great Portland Estates plc, an existing client of the bank.”