M7 Capital (M7C), a full-service real estate debt specialist, has provided a GBP7.3 million loan, on behalf of UK debt fund TREC II, to Garroch Investments, supported by Craigend Properties a regional real estate investor and asset manager, to finance the acquisition of Princes House, an office building situated in the centre of Glasgow’s financial services district.
M7 Capital will provide the financing in two tranches, with an initial GBP6.3 million loan to support the acquisition of the asset and a further GBP1 million facility to fund Craigend Properties’ strategy to transform the asset into an expanded Grade A office building, which will be released subject to planning consent.
Originally constructed in the mid-1960s, the former home of Lloyds Banking Group, and more recently Barclays, is located in a 100 per cent prime office pitch within Glasgow’s Central Business District. It occupies a prominent corner plot on Waterloo and West Campbell Street, only a two-minute walk from Glasgow Central Station. Situated in a prime location at the heart of Glasgow’s international financial district, where strong occupier demand is generating a significant shortfall in Grade A office space.
Craigend Properties focuses on value-add opportunities in UK regional real estate, acting as the asset manager and operating partner alongside private equity investors and family offices.
M7 Capital has been the internal adviser to M7 Real Estate (M7) for all its debt capital market needs since M7 was established in 2009. In 2016, M7C expanded its operations to incorporate a real estate lending and loan servicing platform. M7C’s first UK debt fund, TREC II, has now deployed more than GBP155 million across 16 different loans in line with its strategy of providing loans of up to 70 per cent LTV between GBP5 million and GBP25 million across the office, retail warehouse, industrial and leisure sectors.
Source: m7capital.eu on the 20th October