GR agrees revolving credit facility for City buy
2nd August 2016
Hong Kong-based GR Properties has agreed a revolving loan facility to finance its £28m purchase of Boundary House in the City.
Hong Kong’s Wintime has written a three-year revolving credit facility worth £14.67m, which reflects a 52.76% loan-to-value ratio on the £27.8m purchase price. An interest rate of 2% per annum has been agreed.
Wintime is controlled by GR shareholder Wei Chunxian and GR said it opted for a shareholder loan facility because it was able to secure more favourable terms than was offered by independent Hong Kong financial institutions.
Picton exchanged contracts to sell Boundary House at 7-17 Jewry Street, EC3, last month. The property is located in the eastern part of the City and comprises a 45,000 sq ft multi-let office building, constructed in the mid 1950’s.
On exchange Picton was paid £2.8m and completion of the disposal occured on 30 August 2016.
Picton Capital instructed Gryphon Property Partners in May to sell Boundary House, paving the way for a potential 75,500 sq ft redevelopment of the building.
The freehold asset is multi-let to 12 office tenants, producing a passing rent of £1.319m per annum, equating to an average rent of £28.24 per sq ft for the ground and upper floor office space. This compares to the ground floor west unit which is now under offer at £50 per sq ft.
If you are looking to buy, sell or lease commercial property in the City of London please call Gryphon Property Partners on 0203 440 9800 or click on the following link - Gryphon