M7 Capital (M7C) has provided a £12.5m loan to VCM Global Asset Management to support the acquisition of the circa 106,000 sq ft Orchard Brae House office building in Edinburgh, Scotland.
The loan, which was made on behalf of M7 Capital’s UK debt fund TREC II, will be used to refurbish and let the vacant space in the building.
Hugh Fraser, chief executive officer of M7C, said: “This loan will support VCM in realising its asset management strategy for Orchard Brae House, a high quality and conveniently located office asset close to Edinburgh’s city centre which is already home to a number of strong occupiers.
“There is increasing polarisation in the office market with investors and occupiers seeking modern and sustainable spaces with amenities and strong connectivity, and Orchard Brae House is well placed to capture this demand. We are pleased to be working with VCM on this transaction and to grow our loan book for TREC II.”
Nick Wright, managing director of VCM Europe, added: “We believe that there is an opportunity to take advantage of current heightened levels of risk aversion in the UK and relatively favourable pricing for severely supply-restricted submarkets. M7 understands the real estate and understands VCM’s business plan and has been steadfast in their support during a challenging time in the markets. We look forward to working with them.”
