Quadrant Real Estate Advisors has continued its push into England by providing a £51.24 million acquisition loan to a US-based sponsor on a Central London office building, Real Estate Capital has learned.
The six-year, interest only, first mortgage loan to Newworth Holdings Limited, an affiliate of Alfred Equities, backs 1 Alie Street.
It is one in a string of loans the firm has made as it seeks higher risk-adjusted returns in both England and Ireland, where the office and housing markets are in comparatively short supply.
The firm declined to comment.
Atlanta, Georgia-based Quadrant opened its London offices in 2013, and in November the firm made an agreement with the Ireland Strategic Investment Fund (ISIF) to match capital that will be used to fund debt investments in Ireland.
Based on reports and public records, the investment manager will have deployed about $250 million in capital into England and Ireland by the end of 2015.
In September, the firm took a £35m mezzanine participation at a 750 basis point margin in a £147m whole loan, underwritten by Lloyds, to finance BMO’s (formerly F&C REIT) £175m acquisition of Parkgate retail park in Rotherham.
In December it was a £30.75 million stretch senior development loan to U+I, the UK property company formerly known as Development Securities, to finance an office-to-residential conversion scheme; the loan will fund the redevelopment of the 55,000 sq ft Valentine’s House, an office building in the Ilford area of East London.
Through the arrangement with ISIF, each party will invest up to €50m, used to finance office development or redevelopment projects with senior, stretched, structured loans in Ireland.
Quadrant holds more than $6 billion in assets under management.