Hermes real estate debt strategy completes £29m loan

Hermes Investment Management has provided a £29m loan to the joint venture of Thor Equities and Chenavari Investment Managers to fund the acquisition of 147-155 Wardour Street in London.

The loan is the third financing deal between Hermes and the joint venture, following the funding of two central London properties, 145 Oxford Street and Dover Street, last year.

The £29m loan is made up of an acquisition tranche and capex tranche to support the joint venture’s refurbishment and leasing plans for the asset.

This loan brings Hermes’s total amound invested in the UK real estate senior debt market to £360m across 14 loans.

Vincent Nobel, head of real estate debt at Hermes Investment Management, said: “Providing funding for Thor Equities and Chenavari Investment Managers, to help support the refurbishment and leasing plans for 147-155 Wardour Street, will allow the JV to continue its strong European growth story.

“Their recent record of accomplishment for projects of this nature and our experience of working with them on the 145 Oxford Street and Dover Street transactions, gives us great confidence in their ability to transform this asset. The loan structure fits nicely within our revised lending mandate, allowing us to invest anywhere within the real estate capital structure.” 

Sam Mellor, partner at Chenavari Investment Management, said: “151 Wardour Street is an exciting opportunity and is in line with Chenavari’s investment strategy which focusses on targeting value add propositions in core locations across the UK and Europe. This marks our third transaction with Thor and Hermes and we look forward to building on this successful partnership into 2017 and beyond.”

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