London:

Israeli private buyer snaps up £43m office campus for resi conversion

An Israeli private investor has acquired a 148,000 sq ft office campus in Uxbridge for £43m and plans to convert it into flats.

The investor, advised by BBS Capital, has also secured loan facilities totalling £42.5m from Titlestone Structured Finance and Shawbrook Bank to help fund the acquisition and redevelopment plans.

The West London office campus, which was previously owned by Legal & General, comprises three buildings, which the new owner plans to turn into 237 flats under permitted development rights (PDR).

Following the financing deal, conversion of one of the buildings, Bridge House, totalling 79,459 sq ft, will start immediately. The remaining two buildings, Waterside and Riverside, comprising about 34,000 sq ft each, are let to Xerox until 2020, so their redevelopment will be delayed until then.

For Bridge House, BBS Capital worked with the borrower to secure a £28.5m development loan with Titlestone Structured Finance, at 60% LTV, for a term of 2 years.

For the other two building, Waterside and Riverview, a £14m facility was arranged with Shawbrook Bank at 70% LTV, for a term of two years, to bridge the period until redevelopment works can begin.

Westley Richards of BBS Capital said the firm “had to be creative to structure the deal” because of the different timings of the redevelopment plans.

Simon Dekker relationship director at Titlestone said: “This was an attractive scheme but required strong focus from all parties to be able to meet the timescale of 6 weeks from first meeting to completion.”

The Israeli investor behind the deal also purchased a 170,320 sq ft West London office portfolio at the end of last year, which included Sky’s former HQ, for conversion into residential under PDR. On that occasion, the BBS Capital client secured a £31.3m loan from Octopus Property.

View the article on Property Week

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