TH Real Estate secures €153m debt from ING and Santander

TIAA Henderson Real Estate (TH Real Estate) has secured £120 mln (€153 mln) in new debt financing on behalf of The Houndsditch Estate in the City of London.

The new five-year facility has been provided by Santander and ING on a 50:50 basis.

With a total value of £200 mln, the 30,400 m2 portfolio comprises five properties - Cutlers Court (115-116 Houndsditch), 117-119 Houndsditch, 120 Houndsditch, Cutlers Exchange (123 Houndsditch) and 133 Houndsditch - situated on a 1.75-acre freehold island site in the City of London.

The site was acquired in two stages during 2006 and 2009 by TH Real Estate, including the freehold interest of half of the estate from The Cutlers’ Company late last year. Along with the financing, 50% was simultaneously sold to Madison International Realty, a New York-based investment company, laying the foundations for a new joint venture partnership between the two firms. TH Real Estate will continue to manage the portfolio and debt on behalf of the JV.

Currently 95% let, the estate is located in the Square Mile, where it is set to benefit from its close proximity to Liverpool Street Station, where a new Crossrail terminus will be added in 2017 to the existing rail, underground and bus stations.

Colin Throssell, head of treasury at TH Real Estate, commented: 'This marks another significant milestone in a very successful year on the treasury front, having drawn or being in the process of drawing down £750 mln of new debt facilities over the course of the year across Europe.'