Offices

The office complex has recently been refinanced for more than €600m by a syndicate of French banks.

The £900m equity backstop committed by shareholder Brookfield is designed to gain bondholders’ approval for raising fresh debt.

Berlin Hyp and DZ Hyp, both new lenders on the deal, stepped in after the building’s owners injected €60m into the property.

The central bank says private credit lending and specialist real estate banks could pose unseen issues for financial stability.

The alternative asset manager prefers office renovation projects to demolition plans, according to its head of UK real estate investment.

The refinancing of 32 Rue Blanche in Paris’ ninth arrondissement was secured by Toronto-based investor Oxford Properties following its renovation.

The company says five-year lending rates saw a ‘material decrease’ as central banks’ easing cycle began during the third quarter.

The five-year debt facility has been provided by three of the four lenders that provided a €900m loan against the Paris office complex in 2017.

The debt secured on the 36-storey office building is due to be repaid in January 2025.

The office sector may not have the best reputation currently, but it is still attracting large volumes of real estate lender capital, indicative data compiled by Real Estate Capital Europe shows.