LaSalle backs Brockton at Victoria with £100m whole loan

LaSalle Investment Management has provided around £100m to Brockton Capital for its £137m acquisition of Great Minster North in Victoria, London.

The whole loan reflects a loan-to-value close to 75%. LaSalle is planning to syndicate the facility.

Brockton bought the office building earlier this month from residential developer Alchemi Group. Alchemi purchased it in 2013 for £97.5m from the Irish Banking Resolution Corporation.

The 180,613 sq ft Victoria building is fully occupied by the Department for Transport, which has the lease until December 2018. The site has planning permission until 2019 for a £400m redevelopment into 160 flats, a gym and swimming pool plus new retail units, but Brockton is more likely to keep it as office space.

“Our view is that this is a high quality, sustainable and fully functioning office building which, if the Department for Transport elect to vacate, we will almost certainly refurbish,” said Tony Edgley, partner at Brockton.

“We will reposition the asset to take advantage of the recent and significant improvements in the Victoria submarket.”

LaSalle IM invests in stretched senior and mezzanine debt for its clients through its £600m LaSalle Real Estate Debt Strategies II fund. Offering single loans of between £10m and £200m the fund can lend up to 80% loan-to-value across all asset classes.