CBRE Investment Management Secures Refinancing for 280 Bishopsgate, London

CBRE Investment Management and King Street Real Estate GP, L.L.C. (“King Street Real Estate”), in partnership with Arax Properties have secured refinancing of 280 Bishopsgate, the Grade-A sustainable wellness focused office scheme in The City of London.

A competitive and flexible debt finance package was provided by a financial institution and Delancey.

The new facility will repay an existing loan on 280 Bishopsgate that is reaching maturity.

Despite the ongoing structural changes in the office sector, there was a wide range of lenders interested in refinancing the amenity-rich, sustainable office building. This highlights the continued value of prime office assets in a more challenging environment.

“Refinancing risk continues to be significant in the current market,” said Christina Forrest, EMEA Head of Value-Add Funds at CBRE Investment Management. “We are therefore delighted that with our partners King Street Real Estate and Arax Properties, we have been able to secure this refinancing on competitive terms. We received an exceptionally high number of offers for the refinancing from a variety of leading banks and debt funds, which is testament to 280 Bishopsgate’s quality and strong covenants.”

“An uncertain lending environment has created an opportunity for property-focused investment managers like us to access high quality real estate at a different point in the capital stack,” said Martin Farinola, head of real estate debt strategies at Delancey. “We see there being continued demand for Grade A-plus offices in super-prime locations, such as 280 Bishopsgate, as blue-chip occupiers require best-in-class space that reflects their corporate values and appeals to top-tier talent.”

280 Bishopsgate, located in the heart of the City of London, sits in a prominent position on the east side of Bishopsgate, directly opposite Liverpool Street Station, offering train and tube services including the Elizabeth Line. A full redevelopment of the 275,000 sq ft building was successfully completed in a joint venture between CBRE Investment Management, King Street Real Estate and Arax Properties in 2022, with 134,000 sq ft being pre-let to leading global law firm Baker McKenzie on a 15-year term. Abrdn and Cognizant are also occupiers at the 100% occupied scheme with an 11-year WALB.

Wellness and sustainability are central to the refurbished 280 Bishopsgate’s design. It incorporates a unique, 8,473 sq ft MoreySmith-designed dual reception spanning the full length of the building and connecting Bishopsgate with the green spaces of Bishops Square, Spitalfields.

Private terraces are provided on every floor with lift access to the extensive communal roof gardens and on-site Wellness Suite. 280 Bishopsgate has achieved BREEAM Outstanding and an International Well Building Institute accreditation of Platinum, alongside CyclingScore and WiredScore Platinum.

CBRE Debt & Structured Finance arranged the finance facilities.

About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with $144.0 billion in assets under management* as of March 31, 2024, operating in more than 30 offices and 20 countries around the world. Through its investor-operator culture, the firm seeks to deliver sustainable investment solutions across real assets categories, geographies, risk profiles and execution formats so that its clients, people and communities thrive.

CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.

*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.