GRE Finance agrees loan for City fringe office refurb

GRE Finance has agreed a loan for the refurbishment of vacant space at Old Street Works on the northern fringe of the City of London. The UK lender, which specialises in the UK real estate market, has agreed a £14.9m loan for Riverside Capital, a Jersey-based £1.4bn UK real estate investment fund, against Old Street Works. The site comprises 34,000 sq ft across three adjacent office buildings on City Road, EC1. It provides office space on the first to fourth floors, with retail at the ground and basement levels. The building is let to 10 tenants and is 78% occupied. The 24-month loan is secured against the freehold of the buildings and is being used to fund refurbishment of the vacant space including lighting, flooring and cosmetic improvements. News follows the appointment of associate directors Clare Grimes and Archie Dickinson, from Octopus Real Estate and Hilltop Credit Partners respectively, as the company seeks to capitalise on the surge of opportunities in the real estate finance market. In the past five years GRE Finance has provided £160m in financing for borrowers against the office asset class. Daniel Benton, director at GRE Finance, said: “With an expanding loan book of £120m secured against residential and commercial property across the UK, we have deep conviction in sectors including offices with good fundamentals and operational residential real estate classes such as purpose-built student accommodation and later living and are actively seeking opportunities with borrowers looking for a true partner in their lender.” Clare Grimes, associate director at GRE Finance, said: “Properties like Old Street Works – offices in excellent locations with strong value-add potential – are among the kinds of assets that most appeal to us as a specialist lender with deep property expertise, particularly when there are planning opportunities.” Nicholas Kelliher, transaction lead at Riverside Capital, said: “The refinancing with GRE is testament to the success of our business plan at Old Street Works, and facilitates a renewed opportunity to enhance value as we look to conclude a repositioning of the building.” Image © Riverside Capital