BREDS provides £91m London office financing

Seaforth Land secures the five-year loan with a 55% LTV ratio for the landmark CAA House building in Covent Garden.

London-focused commercial real estate investor Seaforth Land has secured a £90.8 million (€103.2 million) acquisition financing for the CAA House office building in London’s Covent Garden.

The five-year facility, with a loan-to-value ratio of 55 percent, was provided by Blackstone Real Estate Debt Strategies. In conjunction with the acquisition loan, Blackstone has also extended financing towards the refurbishment of the property. HFF advised Seaforth Land on the transaction.

“Blackstone were very competitive, [compared with] the insurance companies and more traditional lenders,” Tyler Goodwin, chief executive officer of Seaforth Land, told Real Estate Capital.

“Blackstone’s facility helps us generate a compelling risk-adjusted return while maintaining a conservative LTV ratio,” he added. “They immediately recognised our vision for place-making with unique and creative office and retail space.”

Seaforth Land bought the freehold office asset, consisting of two interconnected office buildings totalling 222,269 square feet, from real estate investor and developer Almacantar for £165 million.

CAA House comprises two buildings at 1 Kemble Street and 45-59 Kingsway that are connected via a two-story link bridge on the first and second floors. Originally developed as Space House in 1969, the properties were listed in 2015 as Grade II by English Heritage.

“CAA House is a prominent landmark in London’s Covent Garden, and Seaforth Land sought a low-leverage, yet flexible, lending solution which fits squarely within our investment parameters,” said Michael Zerda, managing director and head of Europe for BREDS.