A 58,000 sq ft office building located in the City of London has secured £47.2 million in refurbishment finance. The funding was provided by a specialist debt fund and arranged by finance broker FRP.
The finance package will refinance the owner's acquisition bridge loan and fund a capital expenditure programme. This includes a full internal refurbishment and the construction of an additional top floor, for which planning consent was obtained after acquisition. The project targets BREEAM Excellent certification.
The refurbishment finance was structured at 78% loan to cost (LTC) and 65% loan to gross development value (LTGDV). The margin is set to decrease once the building achieves full occupancy. The refinance tranche drew down within five weeks of credit approval.
Upon completion of the works, the developer plans to pursue either an owner-occupier or single-let strategy, with multi-let as an alternative. Lease marketing is expected to commence once on-site works begin.