Investec Structured Property Finance has provided Floreat with a £19.3m, five-year facility to support its acquisition of a 99,990 sq ft office building at The Old Vinyl Factory development in West London.
Floreat, the privately-owned investment group, agreed a deal at the start of the year to buy the Shipping Building from Moorfield for more than the quoting price of £29m.
The building is let to seven occupiers including air transport technology company SITA, wireless hi-fi pioneers Sonos and global IT providers CHAMP Cargo Systems. Floreat plans to refurbish some of the office space and capture future reversion.
The multi-let building is located five minutes’ walk from the Hayes & Harlington Crossrail station, which is due to open in 2018 and provide fast access to London Paddington (15 minutes) and Heathrow (nine minutes).
The wider £250m regeneration of The Old Vinyl Factory will comprise 642 residential units and 500,000 sq ft of office space as well as restaurants and shops.
Jonathan Long, of Investec Structured Property Finance, said: “The Shipping Building is well-let and carries asset management opportunities as well as the ability to drive reversion. This is our first transaction with Floreat and we look forward to building on this relationship in the future.”
Gavin Booth, investment director at Floreat, added: “The regeneration of the Old Vinyl Factory, together with the arrival of Crossrail, presents a compelling investment opportunity and supports our longer-term strategy of investing in growth locations both in London and the rest of the UK.”
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