Barings Real Estate, part of Barings LLC, has provided a €91.5m (£81m) loan facility for the high-profile €227.1m (£201m) acquisition of No. 1 Spinningfields in Manchester by a joint venture set up and managed by Schroder Real Estate Investment Management.
The 40% LTV, 10-year fixed rate loan is secured against the recently completed 310,000 ft² office building which is home to a range of high-quality occupiers such as PwC, Squire Patton Boggs and Weightmans. Marks & Spencer occupy the ground floor retail space and D&D London are fitting out a high-end restaurant on the 19th floor of the building.
Barings also recently provided €39.2m (£34.7m) of development finance to fund the acquisition of a build-to-rent residential project in Greater Manchester, meaning over €113m (£100m) has been committed to debt transactions in Manchester in recent months. In addition, on the equity side of the business, Barings is currently developing Landmark, a 180,000 ft² office scheme in St. Peter’s Square, Manchester on behalf of an institutional investor.
Chris Bates, Head of Core Mortgage Europe at Barings Real Estate, said, “We are strong advocates of the Manchester market and are delighted to have supported such a high-quality sponsor as Schroders on their acquisition of this Grade A property. We continue to see opportunities across both the senior fixed rate and structured areas of the debt market and look forward to continuing the expansion of our debt platform in 2018.”
