Crédit Agricole CIB has syndicated a significant portion of the £77m of debt it issued for Perella Weinberg’s purchase of One Poultry in the City, to AXA.
The French insurer is thought to have taken at least a 50% participation in the three-year senior loan, equating to a position of about £40m.
Perella paid £110m for the iconic asset designed by Sir James Stirling by Bank station, EC4 at the end of April. The a 150,000 sq ft building includes offices and retail and the main office tenant, Aviva Investors, is due to move out soon. Perella drew down the finance in in June at 57% leverage, thought to be priced at around 300 basis points over Libor.
“It’s in a great spot” said a lender that had seen the original financing mandate but dismissed it because it is “a value-add proposition”. The two largest tenants (Aviva and Regus) both face lease expiry in September and October next year. Crédit Agricole CIB is expected to agree a capex facility for a potential refurbishment of the asset at that point.
The bank’s strategy is to syndicate portions of the loans it makes. Now headed by Anne Toledano in the UK, the bank last month sold down part of the £95m senior debt it provided for Pramerica Real Estate Investors and a client of Tribeca, secured against 431-451 Oxford Street, to Prudential Capital. It brought in Sumitomo Mitsui on a £60m financing of CAA House on London’s Kingsway. The lenders each took 50%.
Earlier this year AXA bought a major, €318m stake in Bank of America Merrill Lynch’s €935bn financing of Lone Star’s Coeur Défense buy. This month, it bought into a €138m German office refinancing by Aareal Bank.