UK investment bank Investec has agreed a £16.6 mln (€18.4 mln) loan to the joint venture between Angelo Gordon and Hondo Enterprises for the acquisition and redevelopment of a former car park in central London into an office.
The 36-month facility, inked by Investec’s structured property finance team, will see the JV acquire the asset with 38 years remaining on the lease. With support from Investec, an extension to 125 years has been negotiated with the freeholder.
On completion, 12-13 Wells Mews will comprise 22,800 ft2 (2,118 m2) of Grade A office space across six floors plus three roof terraces. The Fitzrovia site is equidistant from the transport hubs of Oxford Street and Tottenham Court Road.
Daniel Carlisle at Investec commented: 'We are pleased to have supported Angelo Gordon and Hondo Enterprises on this exciting project. The way we use our cities is evolving and as car usage decreases we are increasingly seeing interesting and innovative ways to repurpose its infrastructure.
'The Covid-19 pandemic means businesses are looking for more versatile offices, with demand for space high in Fitzrovia and vacancy rates low.
'During lockdown, the client has been able to secure an earlier than expected extension to the headlease, which our expert team assisted with. The extension should provide a significant uplift in value to this prime asset.'
Privately-held Angelo Gordon manages approximately $35 bn across a range of credit and real estate strategies, and has been collaborating with Investec since 2018.
Hondo Enterprises is a property investment, development and asset management company specialising in opportunistic and value-add transactions in Central London, and worked previously with Angelo Gordon on the acquisition of Brixton Market.
