Dutch bank ING has provided around £130m to fund Frogmore’s June purchase of the Notting Hill Gate Estate from Pears Group and LaSalle Investment Management.
ING’s loan represents a near 60% loan to value on the 170,000 sq ft, four-building estate and was supplied in two tranches.
The primary tranche was a five-year senior acquisition finance facility, which makes up most of the loan value.
A second tranche will be used for capital expenditure. Frogmore plans to refurbish and reposition the asset.
The senior part of the loan will be syndicated by the bank over the coming months.
ING has been one of the most active lenders in recent months as a result of its policy of syndicating loans.
Its ability to reduce margins using this route has allowed it to lead a number of headline-grabbing deals this year.
The bank was behind the £170m financing of Shimao’s debut UK purchase of Christ Church Court, EC4, for £270m, a deal the bank said it will syndicate later this year.
It has already syndicated its involvement in 25 Churchill Place, E14. ING led a trio of banks including LBBW and Qatari National Bank in a £350m senior loan to refinance the recently completed tower.
ING declined to comment on its loan margins, however investment banks have typically achieved a spread of around 25bps on the margins of senior loans secured against trophy London assets and the pieces which they have sold down this year.
