ING Real Estate Finance has provided a €280 million loan to finance the purchase of a prime Madrid office tower by the billionaire Philippines-based investor Andrew Chan, Real Estate Capital can reveal.
The seven-year loan will finance Chan’s purchase last November of the 60,142 square metre Torre Espacio (Space Tower) located in the Cuatro Torres business area of Madrid’s central business district.
Chan bought the 56-storey tower last November from Spain’s Grupo Villar Mir for €558 million, implying a relatively conservative loan-to-value ratio of around 50 percent. Chan acquired the tower through the purchase of the company Torre Espacio Castellana SAV, the entity to which the loan has been written.
The loan is understood to have priced at a similar level to recent prime office financings in the Spanish capital, within the 150-175 basis points range over three-month Euribor.
The financing closed on 5 November. ING REF plans to syndicate the loan, but will retain a meaningful stake in the deal.
ING was the sole book-runner and mandated lead arranger in the transaction.
The Dutch bank has a track record of working with Asian clients, as well as syndicating debt to Asian banks. Chinese-born Chan is one of the Philippines’ most prominent businessmen.