Investec Structured Property Finance (“Investec”) announces that it has agreed to provide a South African private investor with a loan of £12.5mn to help finance the acquisition of 35 King Street, a centrally-located, freehold, City of London office building. The price paid was £19.4mn.
The property spans c.16,300 sq ft and is let to six business tenants and one retailer with a rental profile which is considered reversionary. It is located between Cheapside and Gresham Street and is close to five underground stations.
This is the second loan Investec has made to support the acquisition of a City office building this year, following a loan to another private South African investor in May 2017 for the acquisition of 6 Dowgate Hill.
Adam Jaffe at Investec Structured Property Finance commented:
“As CBRE reported this week, office assets in the City continue to be attractive investments for a range of domestic and overseas buyers. This is largely due to weaker sterling and the sustained confidence in London as a key global financial centre. We continue to grow our loan book exposure to established South African investors looking at the UK, who benefit from our established track record in providing flexible financing for both investment and development activity in a cross-segment of London property use classes.
“While the macro-economic picture remains uncertain, our relationship-based approach to loan origination means that we continue to fund deals delivering attractive returns. We are delighted to continue growing our relationship with Salamanca Group who advised our clients on both the King Street and Dowgate Hill purchases”.