Hermes Real Estate Debt Strategy completes GBP29m loan to JV partnership for central London asset
Hermes Investment Management – the £28.6 billion manager focused on delivering superior, sustainable, risk adjusted returns to its clients -, has completed a £29 million loan for its real estate debt strategy. Hermes Investment Management has provided senior financing to Thor Equities and Chenavari Investment Managers to fund the acquisition of 147-155 Wardour Street, London W1F.
The loan is the third financing deal Hermes Investment Management has provided to the joint venture of Thor Equities and Chenavari Investment Managers following the funding of two central London properties – 145 Oxford Street and Dover Street – last year. The £29 million loan is made up of an acquisition tranche and capex tranche to support the JV’s refurbishment and leasing plans for the asset.
This new loan brings the total amount Hermes Investment Management has invested in the UK real estate senior debt market to £360 million across 14 loans.
Vincent Nobel, Head of Real Estate Debt at Hermes Investment Management, said: “Providing funding for Thor Equities and Chenavari Investment Managers, to help support the refurbishment and leasing plans for 147-155 Wardour Street, will allow the JV to continue its strong European growth story. Their recent record of accomplishment for projects of this nature and our experience of working with them on the 145 Oxford Street and Dover Street transactions, gives us great confidence in their ability to transform this asset. The loan structure fits nicely within our revised lending mandate, allowing us to invest anywhere within the real estate capital structure.”
Jared Hart, Managing Director at Thor Equities, said: “We have built a fantastic partnership over three deals with Hermes Investment Management and hope to continue this through 2017 as we continue our focus on emerging locations in London, and other European cities.”
Sam Mellor, Partner at Chenavari Investment Management, said: “151 Wardour Street is an exciting opportunity and is in line with Chenavari’s investment strategy which focusses on targeting value add propositions in core locations across the UK and Europe. This marks our third transaction with Thor and Hermes and we look forward to building on this successful partnership into 2017 and beyond.”