Wainbridge Capital Limited, a newly established Jersey-based property investment manager, has completed the simultaneous recapitalization and refinancing of an iconic London office building, No1 Croydon, for £31 million (approx. 35.7 mln.), reflecting a net initial yield of 9%. The asset has been acquired on behalf of Wainbridge Global Opportunities London Limited, WCL's debut value-add real estate fund.
The Croydon trophy asset was formerly held in joint venture between Patron Capital Partners, Delek Global Real Estate and Princeton. Following its recapitalization and refinancing, Wainbridge holds a majority stake in the property with Princeton, the private investment vehicle of the Lee family, increasing its ownership. The deal was secured off-market and was financed by Deutsche Pfandbriefbank AG with a £20.5 million facility.
No 1 Croydon, formerly known as the NLA Tower, is an approx. 15,000-m², 23-story landmark office building, which is currently let to 21 tenants, reflecting a 97% occupancy rate. Situated at 12-16 Addiscombe Road, the property boasts a prime location adjacent to East Croydon station, the third busiest station in London and a major transport hub for the South East. The building was substantially refurbished in 2006 and tenants include AIG, WS Atkins, HCL, Pegasus and The Royal College of General Practitioners.
Harin Thaker, Head of Real Estate Finance International at pbb Deutsche Pfandbriefbank, said: "Wainbridge has established a highly experienced team and this experience is demonstrated in this deal. Although this is a smaller transaction for us, Wainbridge has made a shrewd investment with strong asset management potential."
Robert Rackind, Principal and co-founder of Wainbridge Limited, commented: "The team at pbb Deutsche Pfandbriefbank were very supportive on this complex deal. This transaction presents an attractive opportunity to gain exposure to a landmark, well-let asset in London.
"Our participation in the recapitalization and refinancing of this iconic building and our partnership with Princeton marks a significant step forward as we build up Wainbridge's investment management platform."