Lloyds Chambers buyer lines up Apollo/Castleforge/Tyndaris debt

By James Buckley - Tuesday, January 09, 2018 15:01

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Billionaire investor Gary Fegel, the former head of Swiss commodities giant Glencore’s aluminium business, has emerged as the buyer behind the £100m acquisition of City office building, Lloyds Chambers, as he lines up £83m in acquisition financing from Apollo, Castleforge and Tyndaris, CoStar News can reveal.

Gary Fegel, who earned his fortune working at Glencore between 2001 and 2013, completed his purchase of Lloyds Chambers at 1 Portsoken Street last month through his investment firm, GMF Capital. New York-based Alfred Equities, headed by private investor Abraham Schwartz, had been fronting the deal.

CoStar News has learned that Fegel has lined up acquisition finance from Apollo, which is understood to be providing a £58m senior loan priced at LIBOR + 500bps. Apollo will also provide a £33m capex facility.

Separately, Castleforge Partners and Tyndaris have teamed up to jointly provide a £25m junior loan with an IRR in the high teens. It is thought that Castleforge and Tyndaris are working on another junior loan deal separately as the pair look to increase their mezzanine lending activity.

Fegel will inject £24m of equity into the deal, indicating an overall loan-to-cost ratio of over 80%.

Fegel and New York-based Alfred Equities have opted not carry out the SPPARC Architecture-designed ‘Butterfly’ scheme, in favour of a refurbishment of the existing building. They have paid a net initial yield of 7%.

The deal comes after the joint venture that owns Lloyds Chambers – a partnership between USA Treasury Secretary John Snow, Chinese investor Fosun Property Holdings, a trust of Judith Ryan, and James Lapushner, the former head of the Morgan Stanley Real Estate's investing business in Germany and the founder of Anacott Capital – rejected a series of knockout bids for the building, representing a £35m premium to the October 2013 purchase price.

All parties declined to comment.


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