40-41 Great Marlborough Street acquired for £18.25m

Daiwa Provides First UK Property Loan of £12.8 million to Fund Acquisition

Great Marlborough Street No. 1 Limited, a joint venture between commercial developer MRP and clients of boutique investment manager Certa Capital, has acquired 40-41 Great Marlborough Street in the West End of London for £18.25 million from Soho Realty Limited.

Daiwa Capital Markets Europe Limited provided the debt financing for the acquisition with a £12.8 million loan. Daiwa has had a brokerage and financial services operation in London for over 50 years. This, however, is its first property loan in the UK.

CBRE Capital Advisors is retained as Daiwa’s advisor and was the arranger for the transaction.

The building will be redeveloped by the JV company, and will comprise 15,590 sq ft of commercial space including prime retail frontage on the ground floor.

Alongside its superb West End location adjacent to Carnaby Street, the building has great natural attributes: an attractive period façade, substantial floor to ceiling heights, two main entrances and the opportunity to create south-facing external terraces and balconies. This will allow us to create a spectacular retail space on the lower three floors, particularly suitable for a gallery or restaurant operator and four floors of premium open-plan offices above. We look forward to working with Daiwa and CBRE on the next phase.
Richard Anderson, MRP
With this transaction, you have an attractive existing property, a number of viable options to create value and a developer that can make best use of those attributes. It was a good fit for a pragmatic new property lender such as Daiwa, which is able to offer the flexibility required for this kind of transaction, and we are pleased we could structure a debt facility that worked for all parties. As Daiwa’s retained advisor CBRE are actively looking for future suitable opportunities on Daiwa’s behalf.
Henry Sanderson, Capital Advisors, CBRE