TH Real Estate JV secures £120m Houndsditch Estate refinancing

TIAA Henderson Real Estate and its joint venture partner Madison Realty has refinanced The Houndsditch Estate in the City of London with a new £120m debt facility.

ING and Santander jointly provided the five-year loan. The finance reflects a loan-to-value of 60% on its £200m value.

The deal is the latest in a highly active refinancing program carried out by TH Real Estate across its funds this year and for ING it also adds to a successful last quarter. It is also one of a string of deals the two have tied-up together in recent months.

The 30,400 sq m Houndsditch portfolio comprises five properties – Cutlers Court (115-116 Houndsditch), 117-119 Houndsditch, 120 Houndsditch, Cutlers Exchange (123 Houndsditch) and 133 Houndsditch. The buildings are situated on a 1.75-acre island site. The assets, close to Liverpool Street Station, are 95% let.

Earlier this month TH Real Estate, on behalf of the Central London Office Fund, sold a 50% stake in the estate to Madison International Realty, the New York-based investment group. TH Real Estate manages the asset on behalf of the joint venture.

Colin Throssell, head of treasury at TH Real Estate said:

“This is great result for us and our new JV partners on the portfolio. Our existing relationships with lenders such as ING and Santander, mean we are well positioned to secure extremely competitive terms for assets across our portfolio. It marks another significant milestone is a very successful year on the treasury front, having drawn or being in the process of drawing down around £750m of new debt facilities over the course of the year across Europe.”

Earlier this week ING agreed an €85m refinance of TH Real Estate’s Serravalle Designer Outlet near Milan and last month financed its purchase of the Islazul shopping centre in Madrid with a €125m loan.

ING also clinched two of the largest mandates of the year in Europe – the £365m financing for Safra’s purchase of the Gherkin at 30 St Mary Axe in the City of London earlier this month and the Dutch bank led the €750m financing for Olayan’s purchase of prime retail assets in July.