Type: Senior Acquisition & Development
Loan Amount: £9.3m
Term: 24 months
Location: Farringdon, London

AT A GLANCE
GRE Finance provided a 24-month senior loan of £9.30m, secured by way of a first charge over a freehold office building in Farringdon, London.

THE BRIEF
The borrower was looking to purchase two buildings totalling 10,464 sq ft: 34 Farringdon Lane – an office building spread over six floors and 22-23 Clerkenwell Close, comprising two floors located to the rear of 34 Farringdon Lane, offering parking and ancillary gym space at ground floor level and office space at first floor level. 34 Farringdon Lane is a Grade II listed building and before refurbishment could commence, planning permission and listed building consent were required to refurbish the interior of the property. Clerkenwell Close also required planning consent to increase the square footage. The borrower’s planned refurbishment of Farringdon Lane would provide new warehouse-style office space with high ceilings and historic features, and a reconfiguration of the space at Clerkenwell Close to provide additional office and amenity space.

THE SOLUTION
GRE Finance provided a 24-month senior loan of £9.30m comprising an acquisition facility of £5.3m and a capex facility of £4m, to be used for refurbishing the building. The facility included a three-month VAT tranche.

THE OUTCOME
Having assessed this complex property, spread over two locations, and understood the various risks – in particular the need for planning permission for part of the Clerkenwell Close property and the risks associated with gaining planning consent for a listed building – GRE Finance was able to deliver where others were not.