Barings provides loan for 165 Fleet Street asset acquisition

Barings Real Estate has provided a £43.2m (€48.5m) loan to a Chinese investor to support the acquisition of 165 Fleet Street in the City of London.

Barings said it provided the seven-year fixed-rate first mortgage loan on behalf of an institutional investor. The borrower is part of a financial services group based in China.

Built in 1955, 165 Fleet Street comprises around 67,562sqft of office accommodation over eight upper floors as well as a self-contained retail unit that fronts Fleet Street.

The building is 89% let and occupied by five office tenants and a retail tenant.

Chris Bates, the head of Barings real estate core mortgage business in Europe, said: “As a diversified real estate investor, we remain confident in the outlook for London and its attractiveness for international business.

“The loan for 165 Fleet Street, backed by a strong sponsorship, has enabled the purchase of a substantially renovated asset in an increasingly attractive London sub-market with the potential for rental growth. We look forward to building on the momentum of 165 Fleet and growing our lending platform.”