Bank of London and The Middle East (BLME) has provided £6.05m to finance the acquisition of a 13,000 sq ft multi-let office building on the fringe of the City of London. The Bank has also agreed a £1.74m development facility with another developer to finance the conversion of student units into high end co-living studio apartments in Kingston, in a sign of its confidence in the capital’s real estate market.
The commercial investment facility will enable European wealth management company Bedrock Group’s real estate division to purchase this substantial office space in the heart of London’s financial district, set over five floors. With significant growth potential in the capital, this is BLME’s first such facility for an asset located in the City Fringe.
The development facility will be used to finance the conversion of a large residential asset in Kingston. Currently housing 58 student units with a retail unit, the funds will finance the development of 63 modern studio apartments under the co-living model, with a modern communal lounge, dining and work areas, and a coffee shop on the ground floor.
With both the commercial and retail real estate market rebounding in London after the COVID-19 pandemic, the funding deals are the latest in a string of activity in and around the capital by BLME.
James Procter, Associate Director in the Bank’s Real Estate Finance team, says the deals are indicative of investors’ growing confidence in the Greater London market in the aftermath of the COVID-19 pandemic.
“These deals demonstrate that in both the commercial and residential markets, there is substantial appetite for new investor and development opportunities in Greater London”, Procter said. “With more normal working practices returning this year and into next, the City of London, the financial capital of Europe, remains an extremely attractive location for office units such as that being purchased by Bedrock.
“On the residential side, this is an exciting opportunity for BLME to support the development of forward-looking, high quality community accommodation that is focused on creating solutions to the challenges faced by a generation of younger renters.”