Puma Property Finance has provided a £21m loan to Guernsey-listed Greyarc Investments to fund its acquisition of Oxfam House at Oxford Business Park.
The financing deal for the office building, which measures 88,000 sq ft, marks the lender’s first foray into the life sciences sector.
The site, let to Oxfam, is earmarked for an “extensive” conversion into a life sciences facility. The loan will be used to finalise designs for the conversion as the lease runs to term.
EG previously revealed that the office was acquired by a vehicle associated with former Oxford Technology Park co-owner and developer Angus Bates, for £37.1m.
Sutton Council had sold the property at a net initial yield of 4.25%, with the price representing £420 per sq ft. The sale offered a potential further realisable uplift in excess of £46m.
Known as Building 2700, the self-contained building was developed in 2005 and let to registered charity Oxfam as its headquarters until 2018, when it relocated to Nairobi, Kenya.
Building 2700 has fundamentals that will facilitate its life sciences conversion. These include large, customisable floor plates to allow for flexibility in laboratory configurations, from serviced incubator facilities to a single-let opportunity.
Puma Property Finance said it anticipated a follow-up loan facility to fund the conversion and refurbishment of the building in 2025.
Kevin Davidson, managing director at Puma Property Finance, said the financing is “an exciting move for us into the life sciences sector”.
Davidson added: “Oxford has an unparalleled track record for supporting the growth of life sciences businesses.
“The team at Greyarc Investments have strong knowledge of the Oxford market, having previously developed the Oxford Technology Park.
“The comprehensive refurbishment of the property we are funding will have strong appeal to both existing life science companies and those spinning out of the university while delivering a positive environmental impact.”
Mark Selwood, principal at Bircroft Private, which brokered the loan, said: “Due to the timing constraints involved, it was imperative we introduced not only a competitive lender but one who could be relied upon to deliver within the timeframe.
“Puma engaged with us alongside a carefully selected team of professionals to ensure the debt facility was provided within four weeks of first meeting. A great team effort to deliver an exciting opportunity.”
Check out occupational sale comparables in Oxford >>
Send feedback to Akanksha Soni
Follow Estates Gazette
