GRE Capital agreed a 12-month senior loan of £8.47m secured over the freehold of a recently redeveloped mixed use building in Highbury East providing approximately 26,545 sq ft of Grade A offices over basement to fourth floor with a ground floor restaurant.
The 1930s building underwent a comprehensive redevelopment completed in 2023, including a change of use, full internal and external refurbishment and an upward extension creating two additional storeys. With the works finished and the building substantially let, the borrower needed to refinance the development facility while the remaining floors were placed.
GRE Capital provided a 12 month fully serviced facility refinancing the existing senior debt in full. The building is multi let to a diversified tenant base including ClientEarth and the Michelin Bib Gourmand restaurant Westerns Laundry, giving a blend of strong covenants and medium-term income security with near term reversionary upside from the vacant floors. Drayton Park Overground is 0.1 miles away and Holloway Road Underground 0.3 miles, and constrained local supply of modern Grade A workspace supports the reversion.
Taking out the development facility removed the maturity pressure that had been building against the lease up, and the sponsor has been able to hold for the right occupiers on the remaining floors rather than letting cheaply to a lender’s deadline. The second floor went under offer during the term, and full letting lifts passing rent by around 30%. The building was finished, well specified and already proving its leasing demand, which made the case straightforward.