Investec’s structured property finance team has provided a £16.6m loan to Angelo Gordon and Hondo Enterprises for the purchase and redevelopment of a former car park in Fitzrovia, W1.
The 36-month facility will allow the car park at 12-13 Wells Mews to be transformed into 22,800 sq ft of grade-A office space across six floors. Features include three roof terraces and 40 cycle racks.
Angelo Gordon and Hondo Enterprises bought the lease over the property with 38 years remaining, but with backing from Investec have now extended the length of the lease to 125 years.
Daniel Carlisle, a member of the structured property finance team at Investec, said: “The way we use our cities is evolving and as car usage decreases we are increasingly seeing interesting and innovative ways to repurpose its infrastructure.
“The Covid-19 pandemic means businesses are looking for more versatile offices, with demand for space high in Fitzrovia and vacancy rates low.
“During lockdown, the client has been able to secure an earlier than expected extension to the headlease, which our expert team assisted with. The extension should provide a significant uplift in value to this prime asset.”
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