DekaBank has acted as Sole Arranger and Underwriter on a loan for Swiss Life Asset Managers through the leading European real estate asset manager’s UK-based boutique, Mayfair Capital. DekaBank has provided a £56.25m loan secured on Bonhill Building, 15 Bonhill Street, London EC2, for a term of four years.
Mayfair Capital’s largest ever acquisition of the Bonhill Building was completed in 2019. The building is a freehold asset located in Shoreditch, providing 112,865 sq ft of predominantly Grade A office accommodation and is fully let to six tenants.
Mayfair Capital’s thematic approach to investing looks to capitalise on long-term structural changes in the economy by positioning on the right side of sustaining trends – such as technological innovation, demographics and changes to infrastructure.
Refurbished in 2017, the Bonhill Building shows a net initial yield of approximately 5% with attractive long-term rental growth potential. As it is located in the ‘Tech City’ submarket between Moorgate and Old Street stations, the property benefits from proximity to the traditional City core, as well as the Old Street ‘Silicon Roundabout’.
Giles King, fund manager at Mayfair Capital, says: “To have closed a loan of this size on an office building in central London in the middle of the coronavirus lockdown is no small feat – and is a testament to the tireless work from both parties. We are extremely pleased with the result, as this is a high-calibre asset which offers plenty of opportunities to add value through asset management initiatives.”
“We remain confident in the outlook for the central London office market. Despite concerns around the reconfiguration of workspaces, London is a global city which will continue to attract people and businesses due to its location, time zone, language, workforce, infrastructure and culture. The Bonhill Building meets a number of our thematic investing criteria – tech connectivity, transport infrastructure, clustering of tech businesses and wellness – which reinforces its appeal to businesses.”
Chris Bennett, Head of the London Branch at DekaBank adds: “We are delighted that Mayfair Capital and Swiss Life Asset Managers have become clients of DekaBank in the UK via the loan secured on the Bonhill Building. The challenges of concluding this financing predominantly in a ‘Home Office’ environment were matched by pragmatism and determination on both sides and it is very pleasing to have added a high quality loan and relationship to our loan portfolio. The loan demonstrates the continued commitment to our strategy of providing fully underwritten financing solutions to key clients on well leased commercial real estate.”