DekaBank has arranged a £40.5 mln (€47 mln) loan facility for M&G Real Estate, to finance the acquisition of Saffron House, a central London office located in Farringdon.
The acquisition was made on behalf of an Asian separate account mandate, marking the investor's second acquisition in the UK in the last six months.
Although the deal volume was not disclosed, vendor Columbia Threadneedle put the property up for sale in October with a guide price of £87.5 mln, reflecting a net initial yield of 4.48%.
The 73,000 ft2 (6,782 m2) building at 6-10 Kirby Street has benefitted from a recent refurbishment of the reception and upper office floor plates and is 81% let.
M&G plan to refurbish the recently vacated lower ground floor before releasing to the occupational market. The 3-year senior term loan on a non-recourse basis is fully funded by DekaBank, being sole arranger and lender with an initial 53% loan-to-value.
James White, head of UK origination for DekaBank London, said: 'This facility evidences the banks proven track record of providing acquisition finance in a timely manner.
'We look forward to working with the M&G Real Estate team in realizing their asset management plans for the property.'
