Blackstone finances Seaforth Land’s acquisition of CAA House with £91m loan

By James Wallace - Tuesday, May 08, 2018 11:57

Blackstone Real Estate Debt Strategies has extended a five-year £90.8m senior loan to finance Seaforth Land Holdings’ £165m acquisition of CAA House in Holborn from Almacantar.

Seaforth Land secured a five-year senior loan at a 55% LTV. In addition, Blackstone is also extending financing toward the refurbishment of the property. HFF Real Estate Limited arranged the financing for Seaforth Land.

CAA House comprised two interconnected office buildings – at 1 Kemble Street and 45-59 Kingsway – totalling 222,269 sq ft in London’s Midtown submarket.

The two buildings that are connected via a two-story link bridge on the first and second floors. Originally developed as “Space House” in 1969, the properties were listed in 2015 as “Grade II” by English Heritage. 1 Kemble Street is a 16-storey, 138,556 sq ft building and 45 Kingsway has 62,607 sq ft within eight storeys. The property offers parking for 22 vehicles and common basements offering 21,106 square feet of ancillary accommodation.

Michael Zerda, managing director and head of Europe for Blackstone Real Estate Debt Strategies, said: “This transaction is an excellent example of Blackstone’s ability to provide senior loans against high quality real estate, in support of high calibre borrowers at competitive terms. CAA House is a prominent landmark in London’s Covent Garden, and Seaforth Land sought a low-leverage yet flexible lending solution which fits squarely within our investment parameters.”

Tyler Goodwin, CEO of Seaforth Land, said: “As a value investor and a fiduciary, Blackstone’s facility helps us generate a compelling risk adjusted return while maintaining a conservative loan to value ratio. We’re looking forward to returning ‘Spacehaus’ to the London office market as a celebration of mid-century modern Brutalist architecture.”

The HFF debt placement team included senior managing director Michael Kavanau and managing director Edward Daubeney.

Almacantar, which has owned CAA House since 2012 and sold the asset to Seaforth Land unrepresented, said the equity released will be recycled into the property company’s future pipeline projects.

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

 

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