Greycoat has agreed a £32m whole-loan facility secured against 140 Leadenhall in the City of London from Future Growth Capital, the independent private markets solutions business formed by Schroders and Phoenix Group.
The two-year facility will support the final stage of the comprehensive refurbishment of the Grade II listed building and the execution of Greycoat’s leasing strategy.
Loan proceeds will be used to partially refinance Greycoat’s initial acquisition and capital expenditure already invested, fund the remaining refurbishment works, and include a lender-controlled reserve to support ongoing property and financing costs throughout the full loan term.
The refurbishment of the 45,380 sq ft building is expected to complete in Q1 2026.
Kristina Foster, head of real estate debt at Future Growth Capital, said: “We are pleased to support Greycoat as it delivers the next phase of its business plan for this high quality City of London asset. Demand for best-in-class refurbished City offices remains robust, supported by strengthening lease activity, tightening vacancy levels and improving investor sentiment.
“This loan provides an attractive relative return for UK pension savers underpinned by strong asset fundamentals, resilient market metrics and meaningful equity headroom. This financing also demonstrates how Future Growth Capital’s flexible loan solutions can help bridge the funding gap for high quality transitional office assets, where other traditional lenders remain constrained.”
Ewen MacPherson, CFO of Greycoat, added: “We are pleased to partner with Future Growth Capital on a facility that enables the final phase of this significant refurbishment and supports the completion and leasing of this unique City icon. The works have transformed 140 Leadenhall into a high quality, energy-efficient workspace while preserving its Grade II listed building character and we are already seeing strong interest from prospective occupiers who recognise the quality of this redevelopment. The flexibility of this facility with Future Growth Capital is well aligned with our business plan as we move into the next phase of occupation for this prime City asset.”
Debt advisory firm SPF advised on the transaction.
