The Arora Group has secured a £175m loan from Aviva Investors to finance its acquisition of the 102 Petty France office building in St James’s, Central London.
The 525,000 sq ft property, which overlooks St James’s Park, is currently let to the Ministry of Justice for a further three years until its planned closure in 2028 as part of the government’s Plan for London programme.
Arora will use the three-year facility, provided by several funds managed by Aviva Investors, to acquire and convert the property into hotel and residential use at the expiry of the lease.
Surinder Arora, executive chairman of The Arora Group, said: “We are delighted to establish this important relationship with Aviva Investors. This successful engagement underscores the Arora Group’s commitment to high quality delivery, and we are grateful for the exceptional focus from the team that ensured the timely completion of the facility. Expanding the Arora Group’s strategic footprint into Central London is a significant achievement and we look forward to realising our dynamic vision for this key asset, reinforcing our position in the market.”
Gregor Bamert, head of real estate debt at Aviva Investors, added: “We are very pleased to complete our first financing with Arora, a bilateral transaction that demonstrates our increasing ability to provide bespoke debt offerings. Arora is well-placed to capitalise on what we believe is an excellent repositioning opportunity for this asset.
“This is a great example of our conviction for originating well-structured loans to strong sponsors which can complement our portfolio in delivering outcome for several of our investor clients. We look forward to working with Arora as it executes its plans for the property.”
Arora was advised on the facility by CBRE.
