Helaba finances Harbor Group’s Midtown buy

By James Buckley - Thursday, November 09, 2017 9:08

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German bank Helaba (Landesbank Hessen-Thueringen) has agreed a £31.2m acquisition loan to help finance Virginia-based Harbor Group International’s acquisition of 8 Bouverie Street in Central London, CoStar News can reveal.

HFF arranged the £31.2m financing for Harbor Group’s purchase of the building, which it bought in September for £48.03m, reflecting a 4.12% net initial yield, or £1,004 per sq ft.

The five-year acquisition loan carries a floating rate of interest and marks the inaugural transaction between the two institutions.

Originally built in 1989, the 47,183 sq ft 8 Bouverie Street was renovated in 2014 and features five stories of office space that is fully leased until 2029 to a subsidiary of Euromoney, an international business information group listed on the London Stock Exchange

Harbor Group is a private real estate investment and management firm which controls a portfolio of worldwide assets valued in excess of $5.2bn.  HGI is headquartered in Norfolk, Virginia with offices in New York, Baltimore and Tel Aviv. The company’s real estate holdings include in excess of 4.7m square feet of commercial properties and around 22,500 apartment units. 

The HFF debt placement team representing the borrower was led by senior director Claudio V. Sgobba and director Brad Greenway.

“It has been a pleasure to extend the existing relationship between HFF, Harbor Group International and Helaba over to Europe for this core, central London office transaction,” said Greenway.

“This specific financing request was significantly oversubscribed and is a testament to the quality of the asset, tenant credit, long lease duration, and the superior sponsorship. Mark Lloyd and the rest of Helaba’s team delivered a flawless execution in providing a 65 percent LTV, bilateral bullet loan that was competitively priced,” added Sgobba.

“As a strong and active relationship lender, Helaba were delighted to support this new client in the U.K., and look forward to growing the relationship in the future. The transaction demonstrates our proven ability to deliver when faced with tight acquisition timescales,” added Mark Lloyd, Director of Real Estate Finance for Heleba.

“HGI continues to actively pursue investments in the London market,” said Jay Zwiebel, Executive Managing Director of HGI. “8 Bouverie is a perfect fit for our investment strategy of acquiring properties occupied by first class tenants in key markets.”


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