Floreat Real Estate finances Shipping Building at The Old Vinyl Factory with £19m Investec loan

By James Wallace - Tuesday, May 15, 2018 10:07

Floreat Real Estate has financed the circa £29m acquisition of the Shipping Building at The Old Vinyl Factory development in west London with a £19.3m five-year facility.

Moorfield Group sold the 99,990 sq ft office building to Floreat Real Estate in mid-January. The financing reflects a circa 66% LTV.

Investec Structured Property Finance has provided Floreat’s real estate team with a £19.3m five-year facility to finance its acquisition of The Old Vinyl Factory development

The Shipping Building in Hayes is let to seven occupiers including Air transport technology leaders SITA, wireless hi-fi pioneers Sonos and global IT providers CHAMP Cargo Systems. Floreat plans to refurbish some of the office space and capture future reversion. The building sits within one of the capital’s most significant regeneration schemes and is set to benefit from the arrival of Crossrail.

The multi-let building is located five minutes’ walk from the Hayes & Harlington Crossrail station which opens in 2018, with fast access by rail to both Central London (Paddington 15 minutes) and Heathrow (nine minutes). The wider £250m regeneration of The Old Vinyl Factory will comprise 642 residential units, 500,000 sq. ft. of office space and a variety of restaurants and shops once complete.

Jonathan Long, at Investec Structured Property Finance, said: “The Shipping Building is well-let and carries asset management opportunities as well as the ability to drive reversion. This is our first transaction with Floreat and we look forward to building on this relationship in the future, backed by our expertise including development and investment funding across different sectors.”

Gavin Booth, investment director at Floreat, added: “We were pleased to work with Investec to secure financing on the asset, which allows us flexibility to execute our business plan.

“The regeneration of the Old Vinyl Factory, together with the arrival of Crossrail, presents a compelling investment opportunity and supports our longer-term strategy of investing in growth locations both in London and the rest of the UK.”

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

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