Broadwood Capital has completed a £6.7m loan to Create Real Estate to refinance a recently refurbished office scheme in Cardiff city centre.
Create has undertaken a comprehensive redevelopment of the 42,000 sq ft Coal House and Coal House East, which have an EPC A and BREEAM Excellent rating.
Broadwood’s facility has been provided over a three-year term and supports Create’s business plan for leasing the property over the next 12-18 months.
Dan Smith, founder and CEO of Broadwood, said: “Coal House is a great example of an exceptional product right in the sweet spot of tenant requirement in this important regional office market. We are delighted to be able to assist Create on their refinance and support their business plan to embrace the ESG agenda and maximise the potential of the property.
“At a time when there is uncertainty in global markets, reduced availability of finance and pressure on capital values, there is greater importance on loan structuring, analysis, underwriting and due diligence. Broadwood were able to use their key strengths in this respect to tailor a funding solution to meet Create’s requirements. Ultimately, high quality assets with strong fundamentals show resilience and outperform during times of uncertainty.”
Ricky Humphreys, director of Create, added: “In common with the wider UK regional office market, Cardiff is experiencing a ‘flight to quality’ which is seeing occupiers abandon older, more-tired buildings in favour of modern and sustainable workspace that will serve to naturally draw their teams into the office, boosting productivity and innovation.
“We have responded to a distinct lack of small to medium size office spaces meeting these standards in Cardiff and delivered a truly market-leading, carbon net zero in operation, and design-led refurbishment.
“It’s been a pleasure working with Broadwood to refinance the original development facility. Broadwood’s in- depth approach to analysis has enabled them to remain confident in their underwrite and in our business plan, even as macro-economic headwinds, and lending market conditions have worsened, enabling us to transition smoothly now to getting the building fully occupied and income producing.”
Knight Frank and Savills are the appointed letting agents on Coal House.
