Manchester’s iconic Corn Exchange has been acquired from Aviva for an undisclosed price by an unnamed Middle Eastern private investor. The deal was financed thanks to a £45m bridge facility provided by Cohort Capital. The facility was secured against the 141,000 sq ft, Grade II listed building as well as a portfolio of other mixed-use UK assets. The building, which was put on the market last summer, had a guide price of £42.8m
The Corn Exchange, which was built between 1896-1903 and redeveloped in 2017, comprises a restaurant and leisure venue on the ground, lower ground and first floors, and an aparthotel on the upper floors. It currently has 18 leases with an average lease term of 17 years.
Matt Thame, founder of Cohort Capital, said: “It’s been an eventful year for the private debt markets. But we have definitely seen an increase in situations where lenders have not performed on their initial debt terms. With this deal, we were able to deliver with certainty and speed – which in the current market goes a long way, especially with acquisition opportunities which have real deadlines attached.
“Having a reputable introducer and advisor like Westfort assisting with the closing process made the underwrite much more straightforward. Now the ‘Goldilocks’ period of low inflation, rates and growing assets prices has come to an end, having an experienced debt advisor who introduces quality business but also exits existing loans to term debt couldn’t be more important – for lenders and borrowers alike.”
Richard Herring, co-founder at Westfort Advisors, which advised the private investor on the purchase, said: “This is a fantastic outcome for the investor but also for Cohort, both of whom managed to weather some severe headwinds – not least September’s mini-budget – while managing to remain pragmatic and flexible throughout the process.
“Key to the deal’s success was the diversity of the collateral package, the quality of the Corn Exchange and the calibre of the sponsor. Special thanks should be paid to our legal advisors at Farrer & Co and to Matt Thame at Cohort, who were instrumental in getting the deal across the line.”
Deepak Drubhra, co-founder at Westfort Advisors, added: “We are delighted to have arranged this facility with Cohort Capital, which has enabled our client to secure one of Manchester’s most notable restaurant and hospitality destinations. All parties involved have worked tirelessly to complete this transaction in a tight timeframe during a turbulent economic climate and we look forward to shortly engaging with senior lenders to arrange a term loan facility.”
KLM Real Estate advised Aviva. Cooper Rose acted for the investor.
