FRP arranges £47.2m refinance and capex for London office refurbishment

FRP has arranged a £47.2m facility from a specialist debt fund for the refinance and refurbishment of a 58,000 sq ft office building in the City, on behalf of a longstanding client.

The facility refinances the client’s existing acquisition bridge – also arranged by FRP – and funds a significant capital expenditure programme, targeting BREEAM Excellent. The works cover a full internal refurbishment and a new top floor, for which planning consent was achieved since the original acquisition.

The loan was agreed at 78% LTC and 65% LTGDV, with a plan to step the margin down once the building is fully let.

The transaction was led by FRP partner Edward Horn-Smith and director Philip Kay and marks the team’s third transaction with the client.

Post-capex, the developer’s business plan targets an owner-occupier or single-let strategy, with a multi-let strategy as a fallback. Lease marketing strategy will begin once works start on site.

Philip Kay, Director at FRP, said: “This is a client we know well, and the brief was clear: refinance at pace and fund the capex without losing momentum. We partnered with a provider which took a commercial approach to the more complex points, particularly relating to the top floor addition, and having a direct line to the principal made a real difference. The credit process and certainty of execution were significantly quicker than the other routes available – which is exactly what this client and this timeline needed.”