Real estate investment manager Tokoro Capital has closed a 60% Loan-to-Cost senior investment loan from German lender pbb Deutsche Pfandbriefbank, secured against its recently refurbished 86 Rue De Courcelles Grade-A office building in the 8th arrondissement of Paris.
‘The five year floating rate facility demonstrates the faith the banking market has with respect to the robustness of the Paris office market and that debt continues to be available to borrowers with the right sponsorship,’ the company said in a statement.
Tokoro Capital recently announced that it had agreed to lease the entire 1,100 m2 building to Banque Palatine, the historic French bank, which was founded in 1780 in Lyon and which offers retail and private banking and asset management services. The nine year lease has been agreed at a rent in line with top rents in the CBD with no discount to pre Covid levels, only three months after Tokoro completed its acquisition of the building.
Max Bassadone, co-founding partner at Tokoro Capital, said: ‘We went out to a lot of lenders, but only come back with a handful of term sheets, which shows the depth of the problem when trying to secure financing against vacant stock. However the asset speaks for itself, particularly against a backdrop of constrained Grade-A space in the Paris CBD and unabated tenant demand for the right product.’
‘We are convinced that modern and purpose-built offices in European prime urban locations like Paris will remain attractive. Thus, we are delighted to finance Tokoro’s first acquisition in France and we look forward to continuing to support its growth,’ said Norbert Müller, head of Real Estate Finance Continental Europe West at pbb Deutsche Pfandbriefbank .
Formerly a Hotel Particulier, or grand town house, dating back to c. 1864, the recent refurbishment has delivered a future proofed, service led building, designed to achieve a BREEAM ‘Very Good’ in use rating.
Tokoro Capital was advised by the CBRE Debt Advisory team.
