Barings Real Estate has financed the £201m acquisition of No.1 Spinningfields in Manchester by a joint venture set up and managed by Schroder Real Estate Investment Management with an £81m facility.
The 40% LTV, 10-year fixed rate loan is secured against the recently completed 310,000 sq ft office building, which is home to a range of occupiers such as PwC, Squire Patton Boggs and Weightmans.
Marks & Spencer occupies the ground floor retail space and D&D London are fitting out a restaurant on the 19th floor of the building, which was developed and sold by Allied London.
The deal brings recent debt transactions by Barings in Manchester to more than £100m. Last week, the lender announced it provided £34.7m of development finance to US firm Atlas Residential and IP Investment Management to buy a £55m waterfront private rented sector development site in MediaCityUK in Salford, Greater Manchester. In addition, on the equity side of the business, Barings is currently developing Landmark, a 180,000 sq ft office scheme in St. Peter’s Square, Manchester, on behalf of an institutional investor.
Chris Bates, head of core mortgage Europe at Barings Real Estate, said: “We are strong advocates of the Manchester market and are delighted to have supported such a high quality sponsor as Schroders on their acquisition of this grade-A property. We continue to see opportunities across both the senior fixed rate and structured areas of the debt market and look forward to continuing the expansion of our debt platform in 2018.”
Barings Real Estate is part of Barings LLC, one of the world’s largest diversified real estate investment managers. The company actively invests in the private and public equity and debt markets. It provides advisory services in core, value-add and opportunistic investments for institutional and other qualified investors worldwide.
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