Allianz Real Estate has extended its presence in the UK real estate market through its second landmark transaction of the year. The defensive real estate financing investment was made alongside experienced borrower London & Regional to refinance 55 Baker Street, a mixed-use building in London´s West End.
Out of the total facility, Allianz’s share in the senior loan is of €235.2m (212m GBP) and has been implemented by Allianz Real Estate on behalf of two Allianz companies as part of its debt strategy for the UK.
“We find this conservative deal configuration very appealing and, prime real estate like 55 Baker Street supported by top quality sponsors, suits our approach to European debt investments,” said Roland Fuchs, Head of European Real Estate Finance at Allianz Real Estate. “55 Baker Street also expands our UK portfolio, supporting the diversification strategy that the Allianz companies have been pursuing since 2013.”
55 Baker Street is one of the iconic buildings at the heart of London’s Marylebone district. A former Marks & Spencer headquarters, the property is a mixed use building with ca. 48,500 m² (43,400 m² office space, 4,900 m² retail space and some residential units). Acquired by London & Regional Properties in 2005 and restructured in 2008 with modern standard it obtained “Excellent BREAM” rating as highly energy efficient. A resilient tenancy schedule, an occupany rate of 100 per-cent and mainly longterm leases provide excellent protection against short term vola-tilities in the London rental office market.