North Wind Capital, the multi-family investment office, has financed the acquisition of a landmark mixed-use Mayfair property in Upper Grosvenor Street with an 18-month bridge loan from specialist lender, Cohort Capital.
NWC took vacant possession of 41 Upper Grosvenor Street for around £35 mln (€41 mln) from Merrick, an entity affiliated to a Central Asian family office. The bridge loan represents around 60% loan-to-cost. The funding deal executed from enquiry to completion in just 8 days, NWC said in a statement. NWC plans to refinance the mixed-use asset before the bridge loan’s maturity in autumn 2025.
NWC is working with REDD Real Estate, a London-focussed development manager, appointed to execute the redevelopment business plan. The asset, located adjacent to Grosvenor Square in the heart of Mayfair, has been empty since Schroders left in 2000.
Christian Mathews, investment director of NWC, said: ‘This is a significant acquisition for NWC which provides a rare opportunity to revive a forgotten gem in the heart of Mayfair back to its former glory.’
‘This asset has incredible untapped potential and we look forward to working with our JV partner REDD to unlock that value in what we hope will be the first of several prime London redevelopment plays with our preferred developer.’
Mathews added liquidity was returning in the prime short-term finance market for deals backed by credible sponsors with compelling business plans.
Matt Thame, co-founder of Cohort Capital, said: ‘The pace at which we moved to support this acquisition underpins why Cohort is set apart from traditional lenders.’
Last month, NWC announced an initial equity commitment of £25 mln in a 50/50 co-invest deal alongside Banor Capital as seed capital to assemble a pan-European hotel portfolio, with a focus on the UK, Southern Europe and Italy.
The hotel JV partners aim to assemble a hotel portfolio of around £500 mln. In addition, NWC appointed former Deutsche Bank financier Clive Bull as director of its Luxembourg lending and securitisation vehicle. He is responsible for all new issuance through the securitisation vehicle and will provide advice on the structuring of new loans made across the NWC platform.
