DRC Capital has provided a £42 million development loan to private equity firm Evans Randall to fund the construction of an office scheme in London’s Midtown.
The debt fund manager provided the loan to part-finance the £110 million 90 Fetter Lane scheme, which will provide 75,000 square feet of office space, designed to appeal to multiple occupiers.
The 30-month facility covers the build period and includes a further period for marketing and letting post-completion.
Evans Randall said that demand to finance 90 Fetter Lane came predominantly from the non-bank lending sector, which it said has demonstrated a “healthy appetite” for development finance. Eastdil Secured advised Evans Randall.
“The facility we secured from DRC Capital gives a good snapshot of current trends in property finance,” said Kent Gardner, chief executive of Evans Randall Investors. “We were encouraged by the quality and depth of lenders in the market for high quality projects by experienced investors. These were mostly non-bank lenders, who have stepped into the void left by traditional banks.”
Dale Lattanzio, managing partner at DRC Capital, added: “We approach new lending opportunities in the value add space very selectively, with a focus on lending against the right strategies in the right locations and where projects are being delivered by an experienced sponsor with a strong track record. 90 Fetter Lane meets all these criteria.”
DRC has previously provided finance on other Evans Randall Investors’ assets, including the Königsbau Passagen mixed used scheme in Stuttgart, Germany.
Evans Randall acquired 90 Fetter Lane in 2015 as part of its strategy to reposition aging offices as workspaces for companies in the creative, media, technology, professional or financial sectors. Completion of the project is targeted for May 2018.