CB Richard Ellis announced that its EMEA Debt Advisory team has successfully procured £79 million (approx. 91.5 mln.) in debt financing to facilitate Evans Randall in its £127 million acquisition of Milton Gate, London EC3.
The debt provision in the transaction involved multiple lenders and equated to 62.5% of the purchase price. The deal was secured in challenging circumstances as the property had several features which, in these times of illiquidity amongst financial institutions, made it more difficult to secure interest and competitive terms.
Commenting on the transaction, Paul Ross-Gower, Head of CBRE's UK Debt Advisory, said: "The unfavourable market conditions with continued limited access to capital, coupled with the competitive bidding environment that surrounded Milton Gate, made it an especially challenging transaction. We were therefore particularly pleased to have secured such a high proportion of debt financing despite the more demanding circumstances."
CBRE's debt advisory business has been growing rapidly as CBRE's traditional market leading global commercial real estate capabilities are complemented by the rapidly expanding financial expertise that the firm now commands.
"As a real estate debt adviser, the rare combination of CBRE's market leading expertise in the asset class, our robust due diligence and underwriting processes and our extensive network of banking contacts, mean that we are able to offer clients an unmatched all-round expertise. The outcomes we've achieved working on the Milton Gate transaction and a number of other recently announced successes demonstrate the persuasive and tangible impact this offering is having in the market," Paul Ross-Gower added.
Commenting on the CBRE's role in the transaction, Ian Loveys of Santander Corporate Banking, said: "We are most grateful to have received the proposal from CBRE Debt Advisory. The initial due diligence that had been undertaken by CBRE and the completeness of information presented made it possible for Santander to proceed swiftly with our internal credit process. CBRE represented their client in a highly professional manner and the terms that the prospective borrower required were presented very transparently and accurately by CBRE. This ensured a successful outcome for all parties involved. We look forward to working with CBRE Debt Advisory and Evans Randall again in the future."