Patron provides £163m facility for office repositioning and acquisition

Patron Capital, has provided a £163m senior whole loan to SevenCitiesLdn, backed by Seven Capital PLC, to support an office acquisitioning and repositioning.

The loan supports a £211m strategic repositioning of 123 Victoria Street, a prime Central London office asset in Victoria, SW1.

The facility comprises a £148m acquisition tranche and £15m to fund the refurbishment of 123 Victoria Street, representing 70% loan-to-cost and 59% loan-to-projected value.

The first-ranking senior loan has a term of up to four years, with interest paid current from the asset’s income.

Total lending from Patron Capital’s specialist real estate credit vehicle has now been taken to £270m after this transaction.

Located in Victoria, the 244,000 sq ft freehold office and retail building is fully occupied and has maintained close to full occupancy for the past 12 years.

 With ESG improvements having already been made by the building’s previous owners, SevenCitiesLdn plans to upgrade the building’s communal. The refurbishment will include a new communal business lounge, a substantial terrace, an upgraded reception and enhanced end-of-trip facilities.

Henry Randolph, partner - credit at Patron Capital, said: “We’re delighted to support SevenCitiesLdn with the acquisition of 123 Victoria Street, due to both the asset's fundamentals, the sponsor involved and the management team. 

“Patron Credit aims to lend on assets like 123 Victoria Street, well-located in markets with favourable demand dynamics, and a clear path to creating secure income for the long term. SevenCities has an excellent management team who are already ahead of plan at 123.”

Giles Hoare, director at SevenCitiesLdn, said: “123 Victoria Street is a landmark building in Victoria, and we’re excited to deliver our vision for its future.

Partnering with Patron Capital has been seamless, and in a market where complex transactions can take an age to complete, both teams worked hard to get this exchanged within eight weeks of formal IC approval.

“With our strategy centred on larger office transactions, we hope this marks the start of a long and productive relationship with Patron.”