Delancey Real Estate has helped refinance a 185,000sqft mixed-use freehold asset owed by UK real estate manager Frogmore and a Morgan Stanley Real Estate Investing (MSREI) fund.
Delancey, through its private credit strategy, provided a £38m (€45.3m) junior loan to refinance the Notting Hill Gate Estate in West London, as part of a wider £135m refinancing deal led by Dutch financial services firm ING.
Originally constructed by Land Securities in the 1960s, the 3.11 acre freehold estate consists of three mixed-use blocks –North, South and East. The lower floors house retail spaces, while the upper floors provide office accommodation.
ING has been a lender in the transformation of the Notting Hill Gate Estate since 2015. Delancey previously owned a stake in the estate between 2004 and 2010 through the Metro Shopping Fund.
Samuel Ellis, head of origination, UK real state at ING, said: “We’re proud that ING has played a pivotal role in transforming the Notting Hill Estate over the past decade.
“Since ING financed the acquisition of the 1950s estate in 2015, it has been modernised into a high-quality, mixed-use asset. We look forward to continuing our long-standing partnership with Frogmore and MSREI to drive further success in the Notting Hill area of central London.”
Martin Kom, director of debt strategies at Delancey, said: “This transaction marks a continuation in our strategy of working with high-quality sponsors to finance prime-located assets that are underpinned by strong transport connectivity.
“The Notting Hill Gate Estate is an asset we know intimately from our previous ownership experience, and we are pleased to be involved in such a unique site once more.”
Andrew Rogers, COO and group treasurer at Frogmore, said: “Frogmore and our partners MSREI, are delighted to have completed the refinance of this unique freehold estate, with ING and Delancey. The ongoing support of our longstanding Lender, ING, alongside Delancey, will enable us to continue the repositioning and improvement journey we started in 2015.
“Both Lenders have demonstrated their commerciality and commitment to high-quality assets in strong locations, backed by good sponsors, even in a challenging market. We look forward to working with them both to deliver our business plan.”
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