Tribeca Holdings has secured a £227.5 million loan from LBBW and TH Real Estate to refinance a block of prime shops on London’s Oxford Street.
The six-year loan is secured by 60,521 square feet located at 431-451 Oxford Street, directly opposite the capital’s Selfridge’s department store.
LBBW acted as the lead arranger on the deal. The financing is comprised of a £160 million senior tranche provided by LBBW and a £67.5 million junior tranche arranged by TH Real Estate, on behalf of its US-based parent company TIAA-CREF in its first junior lending in the UK market.
“This transaction fits perfectly with LBBW’s real estate lending strategy to provide senior debt to experienced investors for the acquisition or refinancing of core commercial real estate let to strong tenants,” said Simon Marshall, head of UK real estate at LBBW.
“It showcases the flexibility of TIAA-CREF’s loan offering for high quality assets,” added Shawn Kaufman, director of debt strategies at TH Real Estate.
The senior loan was written at a 49 percent loan-to-value ratio and priced at less than 150 basis points, while the junior loan takes the LTV to 70 percent and is priced at 6 percent, according to CoStar News.
Tribeca Holdings acquired the property in December 2013 for £136m and has since dramatically improved its value through refurbishing the space and improving its income and tenant mix, as well as through timing. Tenants include Watches of Switzerland, Omega, Ecco, Dyson and Tesla, all let on newly signed 15-year leases.
In June 2014, Credit Agricole CIB provided a £95 million three-year senior loan including a £15 million capex line for Tribeca and Pramerica Real Estate Investors, secured on 431-451 Oxford Street. Pramerica Real Estate Investors, through its PRECap IV junior debt fund, had a preferred equity interest in the block and underwrote a whole loan for the £136 million acquisition in December 2013. Tribeca is the asset manager and manages an equity interest on behalf of a private investor client. Credit Agricole sold down part of the senior debt to US debt investor Prudential Capital.
Rothchilds acted as financial adviser to Tribeca Holdings in the latest financing.