CBRE Investment Management (CBRE IM), King Street Real Estate and Arax Properties have secured the £235m refinancing of 280 Bishopsgate in the City of London.
The new “competitive and flexible” debt finance package, which was provided by a financial institution and Delancey, will repay an existing loan on 280 Bishopsgate that is reaching maturity.
The redevelopment of the 275,000 sq ft building was completed in a joint venture between CBRE IM, King Street Real Estate and Arax Properties in 2022.
Christina Forrest, EMEA head of value-add funds at CBRE IM, said: “Refinancing risk continues to be significant in the current market. We are therefore delighted that with our partners King Street Real Estate and Arax Properties, we have been able to secure this refinancing on competitive terms. We received an exceptionally high number of offers for the refinancing from a variety of leading banks and debt funds, which is testament to 280 Bishopsgate’s quality and strong covenants.”
Martin Farinola, head of real estate debt strategies at Delancey, added: “An uncertain lending environment has created an opportunity for property-focused investment managers like us to access high quality real estate at a different point in the capital stack. We see there being continued demand for Grade A-plus offices in super-prime locations, such as 280 Bishopsgate, as blue-chip occupiers require best-in-class space that reflects their corporate values and appeals to top-tier talent.”
CBRE Debt & Structured Finance arranged the finance facilities.
