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TIAA Henderson Real Estate secures £120m debt facility for The Houndsditch Estate, London

The Houndsditch Estate

TIAA Henderson Real Estate (TH Real Estate) has secured a new £120m debt financing on behalf of The Houndsditch Estate in the City of London. The new five year facility has been provided by Santander and ING on a 50:50 basis, on highly competitive and flexible terms.

With a total value of £200m, the 30,400 sq m portfolio comprises five properties - Cutlers Court (115-116 Houndsditch), 117-119 Houndsditch, 120 Houndsditch, Cutlers Exchange (123 Houndsditch) and 133 Houndsditch - situated on a 1.75-acre freehold island site in the City of London. The site was acquired in two stages during 2006 and 2009 by TH Real Estate, including the freehold interest of half of the estate from The Cutlers’ Company late last year. Along with the financing, 50% was simultaneously sold to Madison International Realty (Madison), a New York-based investment company, laying the groundwork for a new joint venture partnership between the two firms. TH Real Estate will continue to manage the portfolio and debt on behalf of the JV.

Currently 95% let, the estate is very well-located in a highly sought-after area of the Square Mile. It is also set to benefit from its close proximity to the major transport hub of Liverpool Street Station, where a new Crossrail terminus will be added in 2017 to the existing rail, underground and bus stations.

Colin Throssell, Head of Treasury at TH Real Estate commented “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 c. £750m of new debt facilities over the course of the year across Europe.”

Ian Loveys, Senior Director, Structured Real Estate Finance, Santander Corporate Banking said “We are delighted to support TH Real Estate and Madison in their new joint venture. Together with ING, we were able to apply our extensive City Office lending experience to provide a well-tailored balance sheet lending solution that met key flexibility and pricing requirements for TH Real Estate and Madison.”

Diane Wonfor, Director, Real Estate Finance, ING Commercial Banking added “This facility builds on a very good existing relationship with TH Real Estate for both banks and we look forward to doing more business with TH Real Estate and Madison in the future.” 

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority (FCA). TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. 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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