US insurer MetLife and financial services group Tiaa-Cref have joined forces to provide £274 mln (€382 mln) to finance a £500 mln office acquisition in London's West End by a consortium led by Hong Kong-based Gaw Capital Partners.
US insurer MetLife and financial services group Tiaa-Cref have joined forces to provide £274 mln (€382 mln) to finance a £500 mln office acquisition in London's West End by a consortium led by Hong Kong-based Gaw Capital Partners.
New York-listed MetLife is the lead investor, providing the borrower with £149.5 mln in financing. Tiaa-Cref, acting through its real estate business TH Real Estate, is advancing £124.6 mln.
The 10-year fixed-rate loan equates to a loan-to-value ratio of 55% for the £498 mln acquisition led by Gaw. The property is located at 123 and 151 Buckingham Palace Road in the Victoria district of London’s West End. The properties, which are adjacent to each other, provide 44,600 m2 of office space with retail at ground level.
Commenting on the investment, Peng Han Lee of Gaw Capital Partners, said, 'This is a rare and wonderful opportunity to re-unite such a large estate in a prime area of London’s West End after two decades of separate ownership. The ongoing regeneration of Victoria both North and South of the train station will only serve to further improve on the location and increase demand for a high quality office product. We are excited to implement our business plan to create a unique offering reflecting the Gaw Capital’s creative DNA and maximising value for our investors.'