Leumi UK has provided a £39.1m senior debt facility to refinance a portfolio of six office assets located across Greater London and the South East managed by Praxis Capital and Veld Capital.
Praxis and Veld Capital acquired the portfolio in 2022 and subsequently implemented a comprehensive refurbishment programme to improve the ESG credentials of the assets. This has resulted in new lettings at improved rental levels and a materially enhanced income profile.
Calum Hulme, head of capital at Praxis, said: “This is our first transaction with Leumi UK, and we are hoping to grow our relationship further as we enter an acquisitive and transformative period for the business. This portfolio was acquired at a very attractive entry basis and transformed via active asset management and capex intervention to deliver a stabilised, high-yielding portfolio.
“There continues to be a real dislocation in the regional office market between strong asset performance and relatively low pricing that has not been fully recognised by capital markets, and it is this window of opportunity that will allow us to add long-term value for our investors.”
Niall Sheridan, director of asset management at Veld Capital, added: “We are pleased to have worked alongside Praxis and Leumi UK to refinance and upsize our strong-performing South East office portfolio. Active stewardship and our targeted capex programme have transformed the portfolio into a resilient, cash-generative platform supported by strong submarket fundamentals. We look forward to continuing our partnership with Leumi and Praxis as we work to generate durable, long-term returns for our investors.”
Nick Westoby, relationship director at Leumi UK, said: “It’s been a pleasure working with the team at Praxis and Veld Capital to support their well-conceived business plans. This portfolio benefits from assets within resilient commuter locations, diversified income and a clear asset management strategy. Combined with Praxis and Veld’s hands-on approach, it is well positioned to continue to perform strongly. We look forward to supporting Praxis and Veld throughout this momentum of growth.”
