Gaw Capital raises GBP28.5 mil in mezzanine financing

By: timothy.tay@edgeprop.sg | Posted on: May 26, 2020

Real estate private equity firm Gaw Capital has announced that it has raised GBP28.5 million ($49.4 million) in mezzanine financing to refinance its preferred equity on four office buildings in Docklands, London. The lending consortium is led by Samsung Securities and KB Asset Management from Korea, and it will provide the five-year mezzanine facility at a loan to value (LTV) of just under 71%.

The office developments in the Docklands were acquired by Gaw Capital on behalf of Asian investors back in September 2014. They are close to Canary Wharf, the secondary central business district in London.

The collection of properties comprises the buildings at Harbour Exchange 1,2,4, and 5, and feature 600,000 sq ft of Grade-A office space, as well as 500 car-parking lots. The offices have attracted tenants from government, financial services, insurance, as well as technology, media, and telecom companies. Key occupants include Financial Ombudsman Service, CLS, Booking.com and QBE Insurance.

According to Gaw Capital, the latest finance deal highlights the growing relationship between the private equity firm and Samsung Securities. Last year, the two companies worked together to acquire the Aoyama Building in Tokyo, Japan, another Grade-A office development.

Christina Gaw, managing principal & head of capital markets for Gaw Capital, says that the new mezzanine financing “demonstrates that the market remains open for quality assets with the right fundamentals and strong cash flow. We are also excited to collaborate further with our Korean partners on future opportunities in the UK and beyond”.

Source: https://www.edgeprop.sg/property-news/gaw-capital-raises-gbp285-mil-mezzanine-financing?utm_source=Facebook&utm_medium=article&utm_campaign=Echo