- Facility supports office-led scheme at 10 Salisbury Square in the City of London developed by Original Works, a new platform sponsored by Invesco Real Estate and Simten.
- First investment underlines new Redevco strategy seeking to capitalise on increasing borrower demand for financing to support the acquisition and retrofit of assets, as well as the construction of high-performing new build properties across core European markets.
Redevco, one of Europe’s largest privately owned real estate managers, has successfully closed its first loan investment from its recently launched Real Estate Debt platform, a landmark moment in the company’s expansion into real estate lending.
The £47.5m (€56.8m) facility will support the acquisition and refurbishment of a c.56,000 sq. ft office-led scheme at 10 Salisbury Square in the City of London. The property is being re-developed by Original Works, a new platform sponsored by Invesco Real Estate, the £65.5bn global real estate investment business of Invesco Ltd. (NYSE: IVZ) and Simten. The loan was arranged by Brotherton Real Estate. The project undertakes a comprehensive retrofit and extension of the existing property to deliver Grade A, healthy, progressive office space with the highest sustainability ambitions including EPC A and BREEAM Outstanding. The investment aligns with Redevco’s strategy of supporting the development of transitional assets through its new Real Estate Debt platform. The facility is structured as a Green Loan in accordance with the Loan Market Association (LMA) Green Loan Principles.
Neil Slater, CEO of Redevco, commented: “Our expansion into real estate debt is an important addition to our core investment capabilities. This landmark first loan embodies our mission of transformative real estate and building value for investors. It is exciting to partner with leading institutional sponsors on projects like this and a proud moment for all at Redevco.”
Richard Craddock, Head of Real Estate Debt Redevco, added: “We are delighted to be supporting Invesco and Simten’s Original Works platform through this financing, which squarely aligns with our strategy to fund best-in-market, future-aligned assets, that deliver sustainable outcomes. We look forward to continuing to mobilise private capital, delivering strong, consistent returns with impact, for our balance sheet and co-investment partners.”
Mike Rayner, Director of Original Works, added: “This facility provides us with a bespoke financing solution that allows us to execute on our plans for 10 Salisbury Square. We look forward to creating a unique building that caters to increasing occupier demand for high-quality, sustainable workspaces. Our shared vision for repositioning core office assets meant the collaboration was a natural fit for everyone”
Ben Rustin, Director of Brotherton Real Estate, added: “There is strong appetite from lenders funding brown-to-green office development in prime locations. Due to a reduction in the development pipeline, the availability of best-in-class sustainable space drives continued upward pressure on rental growth creating an attractive proposition for funders.
Redevco’s Real Estate Debt team provides loans across all major European markets and asset classes, supporting borrowers in optimising their business plans with tailored funding solutions. The team’s focus is on delivering sustainable outcomes, which includes acquisition and capex lines as well as development financing, typically under Green Loan or Sustainability linked loan frameworks.
Original Works was advised on the financing by Brotherton Real Estate, Burges Salmon and Herbert Smith Freehills. Redevco was advised by Stephenson Harwood and Knight Frank.
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