Pan-European real estate investor Patron Capital has provided a £163m (€145.3m) senior loan to support SevenCitiesLdn’s acquisition and repositioning of a £211m office asset in the UK.
SevenCitiesLdn, which is backed by Seven Capital, has acquired 123 Victoria Street, a 244,000sqft freehold office and retail building in central London.
The facility provided by Patron Capital comprises a £148m acquisition tranche alongside £15m dedicated to funding a planned refurbishment of the asset.
Henry Randolph, partner, credit at Patron Capital, said: “We’re delighted to support SevenCitiesLdn with the acquisition of 123 Victoria Street, due to both the asset’s fundamentals, the sponsor involved and the management team.
“Patron Credit aims to lend on assets like 123 Victoria Street, well-located in markets with favourable demand dynamics, and a clear path to creating secure income for the long term.”
According to Randolph, within a week of securing the asset, SevenCities had already signed a new retail tenant, submitted key planning applications, entered negotiations to regear an existing office lease and advanced refurbishment designs with architect Anomaly.
Giles Hoare, director at SevenCitiesLdn, said: “123 Victoria Street is a landmark building in Victoria, and we’re excited to deliver our vision for its future.
“Partnering with Patron Capital has been seamless, and in a market where complex transactions can take an age to complete, both teams worked hard to get this exchanged within eight weeks of formal IC approval. With our strategy centred on larger office transactions, we hope this marks the start of a long and productive relationship with Patron.”
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