Tristan Capital Partners’ income-plus real estate debt fund has completed a deal to provide £35.4m of senior debt to developer Ziser London, for the refinancing of a film and TV studio in north London.
London North Studios comprises 182,764 sq ft on a five-acre site in Mill Hill, NW7, with six studios, an office and ancillary production space. It is thought to be one of the largest filming spaces in Greater London.
The Tips One fund said the funding would be used to refinance and stabilise the property, with a focus on increasing occupancy and creating recurring business among content creators.
Dan Pottorff, head of debt investment at Tristan Capital Partners, said: “The core strategy of Tips One is to provide finance to sponsors with a track record of developing and investing in prime assets to drive income and capital growth.
“The studio market is currently structurally under-supplied and the shift towards content on demand is driving requirements for well-located filming production spaces and putting pressure on market rents. Meanwhile, the asset’s high degree of optionality and potential for residential and industrial redevelopment makes it an attractive proposition for financing.”
Guy Ziser, chief executive at Ziser London, said the deal would help “bring forward London North Studios to meet its exceptional potential in the sector”.
Adam Buchler, managing director at BBS Capital, which advised Ziser London on the deal, said: “We are seeing more and more activity from this alternative but highly attractive asset class, which is currently in vogue due to the supply and demand imbalance in the sector.
“As the sector matures, we expect more players will follow the example of forward-thinking lenders such as Tristan’s Tips One fund in lending against prime assets such as London North Studios.”
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