Cornerstone Real Estate Advisers provides GBP83m loan to Derwent London
Cornerstone Real Estate Advisers has completed an GBP83m refinancing for Derwent London, secured against two prime central London assets valued at GBP172m.
The facility was arranged by Laxfield Capital, which will also act as manager of the loan.
The deal represents Cornerstone’s first real estate lending transaction in the UK and is in line with the company’s strategy of extending into Europe its US commercial real estate debt platform, which completed USD5.7bn in real estate transactions in 2011.
Cornerstone is providing Derwent London with a new fixed rate, 12-year GBP83m loan. This new financing package is secured against two high quality assets in the Fitzrovia sub-market of London’s West End: a 147,900 sq ft, seven storey landmark office building at 2-8 Fitzroy Street, W1, which is fully leased to leading international engineering and design group, Arup; and a multi-tenanted block fronting Tottenham Court Road, Warren Street and Grafton Way, which incorporates the 330-room Grafton Hotel, which is let to Edwardian International Hotels, operating under its Radisson Blu brand, together with a parade of 11 ground floor retail and restaurant units The average weighted unexpired lease term is approximately 23 years.
Laxfield Capital originated, helped structure, and negotiated the deal on behalf of Cornerstone, following its appointment last month to source and manage loans for Cornerstone in the UK.
Charles Weeks (pictured), chief executive of Cornerstone Europe, says: “The completion of our first real estate debt transaction so soon after entering the UK market and with such a high calibre partner as Derwent London is a significant achievement and clearly demonstrates our intention to put Cornerstone at the forefront of the senior lending market in Europe. This will complement the already established position in this field in the US, where we have a debt programme with more than USD20bn of assets under management, in multiple facets of real estate finance.”
Damian Wisniewski, finance director at Derwent London, says: “We are delighted to welcome Cornerstone as a lender to Derwent London. This new long-term, fixed rate loan provides us with a diversified source of funding at a modest all-in interest rate, taking advantage of the recent falls in gilt rates. It also enhances our debt maturity profile and adds an important name to our established pool of lenders.”
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