Oxford Properties has made its first European debt investment, providing part of a £150 mln refinancing package for the owner of Old Spitalfields Market in the City of London.
The property arm of Canadian pension fund Omers provided junior finance with TH Real Estate providing the circa £110 mln senior, for owner Tribeca.
The size of the refinancing is an indication of the increase in value since Tribeca bought the mixed use asset off Bishopsgate four and a half years ago, initially with Ashkenazy Acquisition Corp, when they paid £113 mln, using £95 mln of debt from Blackstone Real Estate Debt Strategies (BREDS).
Oxford Properties declined to comment about the transaction.
EuroProperty reported last November that the Canadian investor was to start lending in Europe; it has been a lender in the US for much longer and has a debt book of over $1 bn there.
It is targeting internal rates of return of 7-10% for European debt investing in line with its property equity investing targets, at 50-75% loan to value attachment points.
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