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TH Real Estate provides £52m loan facility to Grainmarket Properties

21 Ironmonger Lane

TIAA Henderson Real Estate (TH Real Estate) has provided a £52m loan facility to Grainmarket Properties, a portfolio of 10 office and retail assets located across the Greater London and South East regions.

The facility comprises a floating-rate Senior Loan and a fixed-rate Junior Loan, both for a 6-year term.

The c.206,000 sq ft portfolio, which is over 90% let, has a diversified tenant line-up with a strongly reversionary lease profile, and benefits from strong central London office and improving regional office markets. 73% of the portfolio, by value, is located in central London, with the remaining assets in strong regional towns in the South East.

TH Real Estate intends to syndicate the Senior Loan and retain the Junior Facility in its real estate Debt Fund, that launched in December of last year.

Mark Crader, Director of Grainmarket Market Properties, said: “This refinancing consolidates our financing structure. Meanwhile, the financing terms and flexibility provided by TH Real Estate, are well matched with our objectives on our underlying real estate portfolio, to actively asset manage our portfolio and increase rents over the next five years.”

Christian Janssen, Head of Debt at TH Real Estate, said: “Working with experienced operators and sponsors like Grainmarket Properties is one of the key focuses of our lending platform. We were delighted to leverage TH Real Estate’s research and property underwriting expertise, to tailor a financing solution that met the needs of Grainmarket Properties.”

Shawn Kaufman, Director of Debt Strategies, responsible for origination and loan syndication at TH Real Estate, added: “The Grainmarket transaction is representative of how our syndication strategy enables us to deliver an attractively priced whole loan financing solution, up to 75% LTV, to our borrowers, while, by retaining the junior portion of the capital structure, delivering an enhanced return to our fund investors.”

 

This document is intended solely for the use of professionals and is not for general public distribution.

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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