Singaporean investor Shorea Capital has bought a £31.1m Silicon Roundabout office building with the help of a debut loan from Tristan Capital Partners’ latest real estate debt fund.
Shorea will refurbish 186-188 City Road, EC1, to make it more environmentally friendly, using £22.5m of senior real estate debt financing from Tristan’s new income-plus fund.
The company will also significantly increase the floorspace of the 39,000 sq ft multi-let office block which sits near Old Street, subject to planning consent.
Dan Pottorff, head of debt investment at Tristan, said: “This loan illustrates the TIPS 1 market approach of partnering with highly experienced sponsors investing in well-located assets and facilitating value-add business plans that deliver core assets.
“Tristan has been underwriting these kinds of business plans for two decades, and our ability to identify these opportunities through our network, analyse and price the associated risks and execute quickly and decisively means that our pipeline of pan-European deals is building rapidly.”
Tristan launched its new debt investment strategy in May, which focuses on the so-called income-plus space between senior and high-yield debt. The firm says that it offers investors access to a low-risk, diversified debt portfolio.
Knight Frank advised Shorea in securing the financing. The agency’s head of debt advisory, Lisa Attenborough, said: “The debt finance secured from Tristan Capital Partners’ fund enabled the purchaser to complete the acquisition, with the capital in place to modernise and reposition the space for post-Covid working and extend the floorspace.”
London-based Tristan’s real estate funds span across the UK and continental Europe. They include core-plus and value-add strategies, with total assets under management of around €12bn (£10.3bn).
To send feedback, e-mail alex.daniel@eg.co.uk or tweet @alexmdaniel or @EGPropertyNews
Click here to view office investment comparables in Shoreditch >>
