Goldman Sachs seeks to offload Blackstone City loan

Goldman Sachs is attempting to syndicate a £210m whole loan  it made to Blackstone for the acquisition of Devonshire Square in the City of London. The US bank lent all the debt for Blackstone’s £325m-£330m purchase of the 13-building estate in E1.

The blended margin on the five-year term finance is thought to be around 400 basis points over Libor. The ability to source all the finance from one bank helped Blackstone secure the complex quickly and at an attractive price equating to a yield over 7%.

Agent CBRE was appointed to sell the building at the start of the year when it was indicating a guide price around £400m. The vendors were Rockpoint and the Abu Dhabi Investment Authority.

Rockpoint bought the 13 linked buildings for £410m in 2006 at a 4.6% yield with a £340m Morgan Stanley loan for finance, of which £290m was securitised in Triton ELoC 26.

The loan was due to mature last October but was extended  to April 2013. Rockpoint bought the junior loan at a discount to keep control of the property. Blackstone needs to find new tenants: Aon, which accounts for almost half the rent, is moving out in 2014.