Lenders are lining up to provide finance for the Gherkin, EC3, in a deal which could set a record low for new-generation lending margins.
Banks are expected to submit term sheets offering margins of less than 130 basis points on a senior loan to fund the circa £710m purchase.
Only a few German banks, UK clearers and investment banks are expected to be able to bid for the ticket, which could have a loan-to-value of 50%-75%. DekaBank has been involved in a number of low-margin deals in the City this cycle, including the provision of a senior loan at 140bps for Amazon’s HQ at Sixty London, EC1, in March. The senior debt in Barclays’ £335.4m whole-loan for the Oaktree-led MEPC buy was priced at less than 175bps.
A company controlled by the Brazilian Safra family has been selected as preferred bidder for the tower. Deloitte Real Estate and Savills are advising on the sale.
