Crédit Agricole CIB and Sumitomo Mitsui Banking Corporation announce the completion of the £60m refinancing of Almacantar’s CAA House on 43-59 Kingsway and 1 Kemble Street, London, WC2. The facility is secured on CAA House and represents a 50% LTV. The maturity of the financing has been extended from July 2015 to June 2018.
Almacantar acquired CAA House and 1 Kemble Street in March 2012. The assets comprise two large inter-connected office buildings, with a total net internal floor area of 229,164 sq.ft, located on the western side of Kingsway. They are both held freehold and are leased to the Civil Aviation Authority until December 2019 at £6.2 million per annum, reflecting an average rent of £27.11 per sq.ft.
Crédit Agricole CIB arranged the refinancing and also acted as Facility Agent, Security Trustee and Hedging Bank.
Anne Toledano, Head of Real Estate and Hotel Group, Crédit Agricole CIB, UK, said: “The early refinancing of the CAA facility enabled our client Almacantar to benefit from attractive current market conditions. Crédit Agricole CIB was very pleased to arrange this refinancing and lend, together with our partner SMBC, against an office building very well located in London Midtown and fully let to a Government Agency”.
Robert Carney, Head of Real Estate Finance at SMBC EMEA said: “We were very pleased to have the opportunity to work both with Almacantar and Crédit Agricole CIB on the refinancing. The transaction represents a reactivation of SMBC Europe Divisions real estate origination efforts and we look forward to closing other transactions of this type.”
Jonathan Paul, Finance Director of Almacantar, said: “We are delighted to have secured the support of Credit Agricole and Sumitomo Mitsui for the refinancing of CAA House. Since acquiring the property two years ago, the location has become increasingly attractive as it continues to benefit from the restricted supply of office space in the West End and proximity to Covent Garden. This new loan facility provides increased flexibility for Almacantar, extending the timeline for our value-add activities.”
Almacantar is a property investment and development company specialising in large-scale, complex investments in central London, with the potential to create long-term value through development, repositioning or active asset management. Since launching in 2010, Almacantar has acquired a number of prime assets with untapped potential in the heart of London, including: Centre Point, Marble Arch Tower, CAA House, and 125 Shaftesbury Avenue.
About CAA House and 1 Kemble Street
CAA House and 1 Kemble Street are two inter-connected office buildings on the west side of Kingsway, near Covent Garden. Bordered by the West End to one side and Midtown to the other, this is a fascinating part of London that is rich in potential.
About Crédit Agricole Corporate and Investment Bank (CACIB)
Crédit Agricole CIB is the Corporate and Investment Banking arm of the Crédit Agricole Group, the world’s fifth largest bank by total assets (The Banker, July 2013).
Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, investment banking, structured finance and corporate banking.
The Corporate and Investment Bank is structured around four major divisions:
– Client Coverage & International Network and Global Investment Banking
– Structured Finance
– Global Markets Division
– Debt Optimisation & Distribution.
The Bank provides support to clients in large international markets through its network with a presence in major countries in Europe, America, Asia and the Middle East.
For more information, please visit its website at www.ca-cib.com
About Sumitomo Mitsui Banking Corporation (SMBC)
Sumitomo Mitsui Banking Corporation provides commercial banking services. The Company offers deposit, loans, exchange transactions, and other banking services around the world. Sumitomo Mitsui Banking also provides leasing, securities brokerage, credit cards, consumer loans, venture capital, and mortgage securitisation services.