DekaBank has financed two multi-let London offices for long-standing client Stenprop.
The German bank has refinanced one of its own loans, secured on Euston House on Eversholt Street, NW1, with the borrower taking advantage of the reduction in margins in the market. The new loan for the 114,000 sq ft building next to Euston Station totals £27.54m.
The second funding was a £37.5m loan for the South African investor’s £75m acquisition of 25 Argyll Street (formerly Regent Arcade House), W1, a 65,500 sq ft building adjacent to Apple’s Regent street flagship store.
The margins on both five-year loans is believed to be under 160 basis points, and the loan to values are no more than 50%. Stenprop is led by Paul Arenson and invests in the UK, Germany and Switzerland. It is listed on the Bermuda stock exchange with a secondary listing on the South African stock market.
In March, the company raised R458m (€35m) in a private placement to South African institutions. The capital raise was partly used to buy Regent Arcade House and partly to acquire a Berlin shopping centre called Hermann Quartier, for €22.7m.
Deka recently financed Hong Kong private property company Nan Fung Group’s acquisition of 16 Old Bailey with a £47m, five-year loan reflecting a 60% LTV.
It was also in the three-way club which provided £705m of senior financing for the Qatar Investment Authority’s recent acquistiion of HSBC’s headquarters in Canary Wharf. DekaBank’s participation was about £140m with Lloyds and Qatar National Bank the other lenders.
QIA bought the building for £1.175bn in cash last December.