Our client has acquired a 276,890 sq ft commercial asset: warehouse (81%) and office (19%). Our client is seeking a £2.9m mezzanine tranche to sit on top of a 70% senior facility taking the combined facility to 92% LTV.
Investment amount: £3 million
Coupon: 15% + 20% Equity stake
Term: 10 years
Tenant: Sainsburys
Lease length: 14 years ending October 2023
Current rent: £1,186,587 (£4.29/sq. ft)
Net Initial Yield: 8.12%
Rental uplifts: guaranteed (capped and collared 2% to 4%, accumulated 5 yearly) rent increases.
Senior debt: £9.45m (70% of the purchase price for a 15 year term, on a fixed rate of approximately 5.5%, also over the lease term. The debt facility is interest-only for the first 2 years and is then amortising over the remaining 13 years to a balance of £5.87m)
Requirement: £2.9M attracting a 15% coupon payable quarterly in arrears plus a 20% equity stake in the SPV.
Security: second charge on asset (92% LTV)
Contact: Dorothée Queyroux (dorothee@redchilli.com / 020 7780 6507)
For more detailed information on all the current opportunities
download the full PDF document below.
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For more information on these or any other details please contact us at 0845 210 5000 or info@redchilli.com
Red Chilli Structured Finance, Minories House, 2-5 Minories,
London EC3N 1BJ,
United Kingdom
