Value of Office Asset

£105m

Single Let

Blue-chip Tech Company

Client Outcome

95% LTV

A UK real estate and asset management company sought to maximise leverage to release funds for capital expenditure on its wider portfolio.

With a blend of three lending providers, a huge 95% LTV was achievable.

The deal

Assets

  • Large office asset in regional UK valued at £105m

Security

  • First charge over asset
  • High quality sole tenant

Income

  • From rental, long term tenant
  • Upcoming rental review with income uplift

Requirements

  • £100m leverage at 95% LTV
  • Collaborative lenders

Challenges

  • High loan to value sought
  • Single asset, single use, single tenant

Facility Secured

  • 95% LTV
  • Senior mezzanine & profit participation structure
  • Insurer and specialist debt fund

Summary

A UK real estate investment and asset management company sought to refinance a large regional office asset let to a single blue-chip tenant. The client was looking to maximise leverage to release funds for capital expenditures on its wider portfolio. Additionally, as there was an upcoming lease review the client was also looking for finance to extend over the review timeframe in order to reap the benefits of likely subsequent value-uplift.

Utilising relationships with a broad range of lenders, the team structured a highly-levered 95% LTV facility through a senior, mezzanine and profit participation structure from a UK insurer and specialist debt fund. The facility had limited prepayment penalties to facilitate a swift refinance post-review to quickly bring down leverage.

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Colliers International Structured Finance
Second Floor, Weighbridge House, Liberation Place, St.Helier, JE2 3NA, Jersey.

+44 1534 767 600
structuredfinance@colliers.com

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