Wednesday, August 2, 2017

HFF arranges £27.6 million ($36.53 Million U.S.) financing for 43 Brook Green in London

Brook Green Office Building, London, England

LONDON, ENGLAND –– HFF Real Estate Limited (HFF) announced it has arranged £27.6 million ($36.53 million U.S.) in financing for 43 Brook Green, an 85,000-square-foot, single-tenant office building in London.

Claudio V. Sgobba
HFF advised NEO Capital Limited (NEO) to secure the bilateral floating-rate facility from Deutsche Asset Management for its first acquisition in the U.K. market.

43 Brook Green is located in the Hammersmith submarket of London.  The property is fully leased to CH2M, a United States-based global engineering company.  

CH2M’s predecessor company, Halcrow Group Limited, began occupying the transit-oriented building in 2003 with CH2M executing a lease extension in 2014 guaranteeing occupancy through 2030.

The HFF debt placement team representing the borrower was led by senior director Claudio V. Sgobba.

“This was a very competitive financing assignment given the high-quality asset and well-margined loan request,” said senior managing director and leader of HFF London’s debt advisory platform Michael Kavanau.  “Deutsche Asset Management did an outstanding job in structuring and closing an attractive package for our client.”

Michael Kavanau
“We are pleased to support NEO on their first U.K. real estate acquisition,” Sgobba added.  “NEO has been actively looking for a compelling “deep value” strategic location and asset in London, and 43 Brook Green represents a high-quality investment with a blue chip tenant we had previously financed in the U.S.”

“The average rent in Hammersmith is 50 percent higher than the passing rent of £33 ($43.68 U.S.) per square foot, and the Hammersmith submarket is 60 percent below the average leasing rates seen in Mayfair,” Sgobba continued. 

“Lenders are comfortable with the supply and demand fundamentals in Hammersmith, and we expect to see more capital from Asia and the Middle East on the hunt for the six to eight percent cash-on-cash return the location delivers.”

Andrea Vanni, head of European Real Estate Debt Investments at Deutsche Asset Management said, “We are very excited about this new relationship with both HFF and NEO, and we are very pleased to add this new investment to our senior real estate debt fund.”

Andrea Vanni
NEO Capital Limited (“NEO”) was founded by two seasoned investment bankers bringing together over 30 years of experience.  

The firm provides Gulf investors with bespoke investment commercial real estate and private equity deals.  With a presence in London, NEO’s investment strategies are focused on the developed markets of the United Kingdom, Germany and the United States.

For a complete copy of the company’s news release, please contact:

Olivia Hennessey
Public Relations Specialist
HFF | 9 Greenway Plaza, Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |

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