ING Real Estate Finance has funded GWM Group’s £110m purchase of 16-17 Connaught Place in London with a £55m senior loan, Real Estate Capital can reveal.
The five-year, floating-rate facility reflects a loan-to-value (LTV) of 50% and is ING’s second significant loan to GWM.
The Dutch lender, alongside French investment bank Natixis, financed GWM’s €130m purchase in 2013 of the Da Vinci Market Central, near Rome, with a five-year, 45% LTV facility.
GWM, which is based in Luxembourg and backed mainly by Italian investors, bought the Connaught Place office building from Schroder’s West End of London Property Unit Trust (WELPUT) in August.
The 82,000 sq ft office block includes tenants such as footwear firm Hunter Boot and executive search consultants Spencer Stuart.
The Connaught Place acquisition is GWM’s first investment in its new core/core-plus strategy which is targeting £500m for assets in London and other major European cities.
The investor is better known for its interests in Southern Europe. Last year, it set-up a €1bn joint venture with Pimco, one of the world’s largest bond investors, to buy retail assets in Spain and Italy.
In 2013, alongside Helios Capital, GWM provided a £85.5m speculative development facility to Aldgate Developments for a £200m, 17-story tower in East London.