The French bank is financing Tishman’s £210m purchase of The Point in London’s Paddington Basin redevelopment area.
The 232,772 sq ft, grade A office building is an investment for Tishman’s open-ended European core, low-risk fund, which applies leverage of up to 50%. This would equate to a maximum £105m ticket size.
BNP is providing a bilateral loan which it intends to hold in its entirety. With no further sell down intended it is understood to have offered competitive debt terms.
This month BNP took part in a circa €500m four-bank club financing for Saudi-backed Chelsfield’s purchase of an ultra prime Paris property portfolio. In May, it participated in the €430m financing of Hines Italia’s Porta Nuova development in Milan. It was one of several lenders to extend large ticket, revolving credit facilities to UK companies Capital & Counties and British Land in February and April, respectively.
Finance for Tishman’s acquisition of The Point will be drawn down upon the deal’s completion within the next ten days. The US investor is buying the fully-let, 11-floor asset from West End of London Property Unit Trust (WELPUT), which is advised by Grafton Advisors and managed by Schroder Property.
“This first-class property is perfectly situated to benefit from the opening of Crossrail. Demand is very heavy for such strategically-located assets,” said Dan Nicholson, managing director in charge of Tishman Speyer’s UK platform.
The Point is the group’s second London acquisition this year, following its circa £310m buy of Sainsbury’s corporate headquarters at 33 Holborn in April. Deka provided financing of around £155m.
The US investor also owns the Sanctuary Buildings in Victoria, which it had been advanced in selling to private equity firm Henley Investments but that sale has since fallen through. Henley had appointed Eastdil Secured to help it find £135m of whole loan financing for the prospective purchase.
Tishman also owns Eland House, SW1, for which planning consent was recently obtained for a major redevelopment that will deliver 320,000 square feet in early 2016.