Knight Frank Debt Advisory arranges three-year debt facility for Korean investor

Knight Frank Debt Advisory has arranged a three-year debt facility at 65% loan-to-value (LTV) for Hyundai Asset Management’s purchase of Gyle Square.

Acting for DB Financial Investment Co., Ltd. on its first underwriting of a UK property purchase, Knight Frank arranged the debt facility from ICICI Bank UK.

The Korea investor acquired Gyle Square, the 148,796 sq ft NHS headquarters in Edinburgh, from Greenridge Investment Management for £55.2 million, after rolling out its first public real estate fund to secure the transaction.

Gyle Square is located in the South Gyle Business district on the western edge of Edinburgh, the fourth largest office complex in Scotland and home to multinational companies including JP Morgan, Tesco Bank and the Royal Bank of Scotland.

Edinburgh investment firm 9 West Capital sourced the financing for the off-market deal.

Jane Stockdale, Senior Analyst from Knight Frank Debt Advisory, commented: “We are delighted to have closed our first transaction with 9 West Capital and Hyundai Asset Management. This was a good example of a competitive debt package allowing a sponsor to achieve its cash on cash requirements whilst purchasing a high quality regional asset at a keen yield. We are excited by the number of opportunities across Europe for 9 West and Hyundai and look forward to working closely with them in the future.”

Robbie Moir from 9 West Capital, added: “This is a major overseas investment in Edinburgh which reflects very positively on the level of global interest in the commercial property sector in Scotland. The success of Knight Frank Debt Advisory in arranging an attractive debt facility was critical to making this deal happen.”