Pembroke Real Estate has secured £145m from DekaBank to refinance two of its prime City assets.
The deal between the German lender and the real estate arm of Fidelity Investment closed last week. The finance has been issued as two separate loans on 10 Finsbury Square and 41 Lothbury, both EC2.
The loan against 10 Finsbury is for close to £85m on a seven- year term and represents a loan to value of close to 60%.
The newly developed 150,000 sq ft building is situated on the edge of the City and tech and media centres Shoreditch and Old Street Roundabout. The building is now around 90% let following the signing of inter-dealer broker OTC Europe this week. Other tenants include the London Metal Exchange, law firm Fox Williams and private equity business Pantheon.
The second facility of close to £60m, for 41 Lothbury, was a refinance of an existing DekaBank loan issued in 2010. The term was also in the region of seven years at a cost of around 150bps.
The building was originally purchased by Pembroke in 2010 from Glenn Maud’s Propinvest for £95m. The new loan is understood to have provided a significant cost saving on the 2010 margin as a result of the increasingly competitive nature of the debt market.
The 122,808 sq ft office building is situated by the Bank of England and tenants include fund management firm Amundi, banker Canaccord Genuity and lawyer Baker Botts.
The bank backed the two assets owing to the strong rental income they provide and the high quality of the developments. DekaBank also has a long-standing relationship with Pembroke, having been its lender of choice in recent years, along with Deutsche Pfandbriefbank.
