Japan's Sumitomo Mitsui Banking Corporation has announced its return as an active real estate debt originator in Europe.

Japan's Sumitomo Mitsui Banking Corporation has announced its return as an active real estate debt originator in Europe.

The Japanese lender has joined forces with Crédit Agricole CIB to provide a £60 mln (€72 mln) refinancing of Almacantar’s CAA House on 43-59 Kingsway and 1 Kemble Street, London, WC2.

The facility is secured on CAA House and represents a 50% LTV. The maturity of the financing has been extended from July 2015 to June 2018.

Almacantar acquired CAA House and 1 Kemble Street in March 2012. The assets comprise two large inter-connected office buildings, with a total net internal floor area of 229,164 sq ft (21,300 m2), located on the western side of Kingsway. They are both freehold properties leased to the Civil Aviation Authority until December 2019 at £6.2 mln per annum, reflecting an average rent of £27.11 per sq.ft.

Crédit Agricole CIB arranged the refinancing and also acted as facility agent, security trustee and hedging bank.

'The transaction represents a reactivation of SMBC Europe Division's real estate origination efforts and we look forward to closing other transactions of this type,' said Robert Carney, head of real estate finance at SMBC EMEA. Earlier this month, the bank also participated in a consortium providing £785 mln of debt to UK REIT British Land.

Jonathan Paul, finance director of Almacantar, added: 'This new loan facility provides increased flexibility for Almacantar, extending the timeline for our value-add activities.'