Barings backs Hao Tian’s London Corn Exchange acquisition

The private lender has provided an £83m loan to the Asian investor, which has secured a freehold deal for the ‘high-quality asset’.

Barings Real Estate has provided an £83 million (€94.7 million) loan to back the freehold acquisition of London’s Corn Exchange by Hao Tian Asia Investment Company.

The seven-year fixed-rate, first-mortgage loan provided to fund the mixed-used building represents a loan-to-value ratio of 65 percent.

The property, at 55 Mark Lane in the City of London, comprises around 161,689 square feet of grade-A office, retail and ancillary accommodation over 10 floors, including a basement level. The asset, which is fully let, is occupied by eight office tenants.

“This significant loan has enabled the purchase of a high-quality asset in a prime City office location with strong covenants and the potential for rental growth,” said Chris Bates, head of real estate core mortgage Europe at Barings.

“We remain confident in the outlook for London and its attractiveness for international business, as evidenced through this transaction. We look forward to building on recent momentum to grow our lending platform,” Bates added.

Barings has been active in London, having closed several property financings recently. In April, Barings wrote a £53.9 million development loan facility to Meadow Partners on behalf of an institutional investor. The debt facility funded a mixed-use scheme comprising residential and commercial space in Maida Vale, West London.

A month later, the private lender provided a £165 million loan secured against the Hotel Café Royal, the 150-year-old, five-star hotel in London’s West End.