MetLife and TH Real Estate provide GBP 274.1m commercial mortgage loan for London office property

MetLife and TH Real Estate (acting on behalf of TIAA-CREF) are jointly providing a commercial mortgage loan of GBP 274.1 million to a consortium of investors led by Gaw Capital Partners to finance the acquisition of a landmark office building complex in London’s West End.

MetLife is the lead investor, providing the borrower with GBP 149.5 million in financing. TIAA-CREF is advancing GBP 124.6 million. The term of the fixed-rate loan is 10 years. The loan has a 55 percent loan-to-value.
 
The property is located at 123 and 151 Buckingham Palace Road in the Victoria district of London’s West End. The properties, which are adjacent to each other, provide 480,000 sq.ft. of office space with retail offering at ground level.
 
“We are delighted to have provided another loan to Gaw Capital Partners and help them acquire this landmark West End investment property,” says Barry Worth, a director in MetLife’s London office. “We are also excited to collaborate on our first co-financed, fixed-rate loan in London with TH Real Estate advising TIAA-CREF.”
 
Christoph Wagner, Director of Debt Strategies at TH Real Estate, says: “We are very pleased to have seamlessly worked with MetLife’s highly experienced team to jointly deliver an attractive financing structure in a short timeframe to support Gaw Capital’s acquisition.”
 
Peng Han Lee of Gaw Capital Partners, says: “This is a rare and wonderful opportunity to re-unite such a large estate in a prime area of London’s West End after two decades of separate ownership. The ongoing regeneration of Victoria both North and South of the train station will only serve to further improve on the location and increase demand for a high quality office product. We are excited to implement our business plan to create a unique offering reflecting the Gaw Capital’s creative DNA and maximising value for our investors.”