Tristan Capital Partners’ newly-established Income Plus Real Estate Debt Fund has debuted in London with the provision of £22.5 mln (€26 mln) of senior real estate debt financing to Shorea Capital, a privately-held investment vehicle based in Singapore, alongside their operating partner, Highbridge Estates.
The deal supports Shorea Capital’s acquisition of 186–188 City Road, a prominent multi-let office building comprising 39,000 sq ft (3,620 m2), close to London’s Old Street ‘Silicon’ roundabout. The financing includes a capex facility to support the new owner’s plans for an ESG-driven refurbishment of the asset.
'This loan illustrates the TIPS 1 market approach of partnering with highly experienced sponsors investing in well located assets and facilitating value-add businessplans that deliver core assets,' said Dan Pottorff, head of debt Investment at Tristan. 'Tristan has been underwriting these kinds of business plans for two decades and our ability to identify these opportunities through our network, analyse and price the associated risks and execute quickly and decisively means that our pipeline of pan-European deals is building rapidly.'
Tristan’s debt investment strategy, which launched in May of this year, focuses on the “income plus” space between senior and high yield debt and offers investors access to a low risk, diversified private real estate debt portfolio across all major markets and asset classes.
Ashil Sodha, director of debt Investment at Tristan, said: 'We are pleased to have supported Shorea and Highbridge with this financing, both of whom have a well established track record of delivering high-quality institutional London office refurbishments of this nature. The TMT sector has been the leading driver of job creation in London in recent times and we expect the property and business plan to capitalise on the resulting occupier demand.'
Knight Frank’s Debt Advisory team supported Shorea Capital in the transaction, securing acquisition finance in addition to a Capex facility from Tristan’s Income Plus Debt Fund, established earlier this year.