Allianz takes majority senior tranche stake in £450m Knight Frank HQ refi

By James Buckley - Wednesday, September 13, 2017 11:01

Allianz Real Estate has agreed a £212m refinancing with London & Regional for 55 Baker Street, Knight Frank's West headquarters, taking the majority stake in the senior tranche financing for the West End asset.

Allianz this week emerged as the third and final party in a club deal alongside BNP Paribas Corporate and Institutional Banking and TH Real Estate for last month’s £450m refinancing of the building.

BNP Paribas provided the minority stake in the senior loan behind Allianz’s majority stake, while TH Real Estate has written the mezzanine strip, with the whole loan representing a loan-to-value of just over 70%. An LTV of 72% would imply a valuation for the West End building of £625m.

The refinancing replaces an existing facility provided by HBoS.

The deal is Allianz’s second major transaction in the UK this year after the co-financing of the CityPoint Tower.

Out of the total facility, Allianz's share in the senior loan is of £212m and has been implemented by Allianz Real Estate on behalf of two Allianz companies as part of its debt strategy for the UK.

The 630,749 sq ft building is owned by London & Regional, a global private investment company with more than £9bn in assets, which extensively refurbished the building in 2008 to provide retail space at ground level and office space on the eight floors above.

 The property is located in Marylebone and is currently 100% let to a  mix of tenants. It serves as the UK headquarters for Knight Frank, BDO, Oliver Wyman and Brevan Howard, as well as London & Regional’s own London headquarters.

"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."

Allianz said: "A resilient tenancy schedule, an occupany rate of 100 percent and mainly longterm leases provide excellent protection against short term volatilities in the London rental office market."

jbuckley@costar.co.uk

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