Uxbridge: Investor acquires office campus for PD scheme
BBS Capital, the leading debt advisor and asset manager, has arranged, on behalf of the private Israeli investor, two facilities totalling £42.5m with Titlestone Structured Finance and Shawbrook Bank.
The office campus comprises three buildings in Uxbridge with consent for change of use into 237 residential units.
Conversion works on one of the buildings, Bridge House, totalling 79,459 sq ft, will commence immediately.
However, the remaining two buildings, Waterside and Riverside, comprising approximately 34,000 sq ft each, are let to Xerox until 2020, meaning their redevelopment will be delayed until vacant possession can be obtained.
Because redevelopment works will start at different times, BBS Capital has structured two facilities to ensure its client could acquire the office campus, but match its two separate business plans for the redevelopment of the buildings.
BBS Capital secured a £28.5 million development loan for Bridge House with Titlestone Structured Finance, at 60% LTV, for a term of two years. For the Waterside and Riverview buildings, a £14m facility was arranged with Shawbrook Bank at 70% LTV, for a term of two years, to bridge the period until redevelopment works can begin.
Westley Richards of BBS Capital said: “We had to be creative to structure this deal. Our extensive knowledge of the debt market and senior level relationships with lenders meant we were able to secure bespoke facilities to suit our client’s business plan. Both Titlestone and Shawbrook were able to move quickly and offer the flexibility that we needed on very competitive terms.”
Simon Dekker, relationship director at Titlestone, said “We are delighted to have been able to support this acquisition following the introduction from BBS. This was an attractive scheme but required strong focus from all parties to be able to meet the timescale of six weeks from first meeting to completion. This shows that in the current market place, the ability to move quickly as well as provide the required level of gearing is equally important.”
Source: CoStar
