Barings loans Chinese investor €48m for Fleet Street deal

Barings Real Estate, part of Barings LLC, has provided, on behalf of an institutional investor, a £43.2 mln (€48 mln) loan to support the freehold acquisition of 165 Fleet Street in the City of London.

The borrower is part of a large financial services group based in China. The seven-year fixed-rate first mortgage loan represents a loan-to-value of 60.7%.

'As a diversified real estate investor, we remain confident in the outlook for London and its attractiveness for international business,' said Chris Bates, head of real estate core mortgage Europe at Barings.

165 Fleet Street was built in 1955 and has gone through extensive renovations since 2005. The property comprises 67,562 ft2 of office accommodation over eight upper floors as well as a self-contained retail unit that fronts Fleet Street. It is 89% let and occupied by five office tenants and a retail tenant.

'The loan for 165 Fleet Street, backed by a strong sponsorship, has enabled the purchase of a substantially renovated asset in an increasingly attractive London sub-market with the potential for rental growth. We look forward to building on the momentum of 165 Fleet and growing our lending platform,' concluded Bates.


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