Real estate private equity firm Gaw Capital Partners has raised GBP 28.5 million in mezzanine financing to refinance its preferred equity on its landmark office building in Docklands, London.
The lending consortium led by Samsung Securities and KB Asset Management from Korea provided the five-year mezzanine facility at a LTV of just under 71%.
Acquired by Gaw Capital on behalf of Asian investors in September 2014, Harbour Exchange 1,2,4 and 5 comprises of 600,000 square feet of Grade A office space over four buildings between 3 and 16 floors, 500 car parking spaces and a nine acre freehold. The property is well located in the Docklands area on the periphery of the Canary Wharf estate, benefiting from the communications links and amenities, while providing Grade A space at a significant discount to the Canary Wharf estate. This has attracted a diverse range of tenants from government, financial services, insurance, TMT and other sectors, with key tenants such as the Financial Ombudsman Service, CLS, Booking.com and QBE Insurance.
The deal highlights the growing relationship between Gaw Capital and Samsung Securities dating back to another successful deal of acquiring Aoyama Building, an Grade A office building located in the center of Tokyo, Japan in 2019.
“We are delighted to have been able to successfully raise this mezzanine facility with the support of Samsung Securities and KB Asset Management against the uncertain backdrop of COVID-19 and significant global financial turmoil. This demonstrates that the market remains open for quality assets with the right fundamentals and strong cash flow. We are also excited to collaborate further with our Korean partners on future opportunities in the UK and beyond,” said Christina Gaw, Managing Principal & Head of Capital Markets for Gaw Capital.