Temasek and Oxford Properties have financed the purchase of the Blue Fin Building, SE1, through HSBC.
The real estate lending team of the UK bank has extended a short-term facility of less than five years to the joint venture partners to finance the £415m purchase from Time Inc.
With a loan-to-value ratio of around 50%, the bank will provide around £205m for the building named after its distinctive blue exterior panels.
The building is a 100% let to previous owner Time and another 12 occupiers on long leases.
Despite selling the asset, Time intends to remain in the building. As a result of the quality of tenant and asset, the finance cost on the building is expected to be tight, with costs to the jv expected to be 170bps over Libor.
HSBC declined to comment.
