The Royal Bank of Scotland has secured the financing mandate for 100 Barbirolli Square in Manchester in a deal which reflects the bank’s increasing appetite for risk.
Moorfield Group and Oaktree Capital Management, which bought the building from SWIP for £41m in July, selected the bank ahead of Santander, which had also offered terms.
A whole loan package including a blend of senior and mezzanine funding totalling around £30m is thought to have been agreed, reflecting an LTV in excess of 70%.
It would be among the first times the bank has offered mezzanine funding on a regional office deal since the downturn. The 140,000 sq ft property also presents substantial leasing risk.
Ernst & Young is among the largest tenants in the building, occupying over 50,000 sq ft on the second and third floors.
Its lease expires in November 2014.
The largest tenant in the building, law firm Addleshaw Goddard, has expiries in 2016.
Moorfield and Oaktree plan to refurbish elements of the building when leases expire.
jack.sidders@estatesgazette.com
