Redevco has successfully closed the first loan investment from its recently launched real estate debt platform.
The £47.5m facility will support the acquisition and refurbishment of a circa 56,000 sq ft office-led scheme at 10 Salisbury Square (pictured) in the City of London, which is being redeveloped by Original Works, a new platform sponsored by Invesco Real Estate – the £65.5bn global real estate investment business of Invesco and Simten.
The redevelopment project will see the existing property comprehensively retrofit and extended to deliver Grade A office space. The facility is structured as a green loan in accordance with the Loan Market Association (LMA) Green Loan Principles.
Neil Slater, CEO of Redevco, said: “Our expansion into real estate debt is an important addition to our core investment capabilities. This landmark first loan embodies our mission of transformative real estate and building value for investors. It is exciting to partner with leading institutional sponsors on projects like this and a proud moment for all at Redevco.”
Richard Craddock, head of real estate debt at Redevco, added: “We are delighted to be supporting Invesco and Simten’s Original Works platform through this financing, which squarely aligns with our strategy to fund best-in-market, future-aligned assets, that deliver sustainable outcomes. We look forward to continuing to mobilise private capital, delivering strong, consistent returns with impact, for our balance sheet and co-investment partners.”
Mike Rayner, director of Original Works, said: “This facility provides us with a bespoke financing solution that allows us to execute on our plans for 10 Salisbury Square. We look forward to creating a unique building that caters to increasing occupier demand for high-quality, sustainable workspaces. Our shared vision for repositioning core office assets meant the collaboration was a natural fit for everyone”
Ben Rustin, director of Brotherton Real Estate, added: “There is strong appetite from lenders funding brown-to-green office development in prime locations. Due to a reduction in the development pipeline, the availability of best-in-class sustainable space drives continued upward pressure on rental growth creating an attractive proposition for funders.”
Original Works was advised on the financing by Brotherton Real Estate, Burges Salmon and Herbert Smith Freehills. Redevco was advised by Stephenson Harwood and Knight Frank.
