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.
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