ICG Longbow finances St James’s office – ICG Longbow has provided a new £16.9m loan facility to a vehicle managed by GMG Real Estate, to help it buy an office property in St James’s, which leased to a UK Government agency.
The company’s £16.9m forms part of a £22.3m facility, with the balance of the money coming from another fund managed by the same investment adviser, on the same terms.
On day 1, the borrower is drawing down £12.8m. At this level, the LTV is 70.0%, which is quite high but no doubt the manager thinks this is reasonable given the security of the covenant. The facility also includes a capital expenditure commitment to allow for the refurbishment of the property during the loan term.
The terms of the facility have not been disclosed but the statement says that, “in addition to an attractive coupon, the facility is structured with contractual arrangement and exit fees and is accretive to shareholders.”
As at 23 July the company has total committed facilities of £130.2m, of which £119.7m has been drawn. ICG Longbow has drawn down £4.4m on its revolving credit facility. It says there is another £7.8m loan secured by an industrial investment, which it expects to complete in the coming weeks.
LBOW : ICG Longbow finances St James’s office