Doric agrees £80m revamp for Newgate Street office
Quadoro Doric has agreed an £80m refinancing and refurbishment package with York Capital and Berenberg for its City office block at 7 Newgate Street, EC1.
The package will cover the costs of the revamp, as well as tackling the building’s outstanding debt. The 75,000 sq ft City office was recently vacated by AXA IM.
It means that previously stalled plans for a sale of the site are officially off the table for the time being. The building underwent a sales process last year, with BentallGreenOak’s investment fund Welput looking to pick it up.
Quadoro Doric has agreed an £80m refinancing and refurbishment package with York Capital and Berenberg for its City office block at 7 Newgate Street, EC1.
The package will cover the costs of the revamp, as well as tackling the building’s outstanding debt. The 75,000 sq ft City office was recently vacated by AXA IM.
It means that previously stalled plans for a sale of the site are officially off the table for the time being. The building underwent a sales process last year, with BentallGreenOak’s investment fund Welput looking to pick it up.
However, Welput pulled out of the deal in December, despite plans for an upgrade having been submitted to local authorities.
Now, developers hope that their revised plans for a refurbishment, designed by Morrow + Lorraine Architects, will be approved by the City of London Corporation in the coming weeks. LS Estates is development manager on the project.
If all goes to plan, main works are expected to start on-site later this year, with completion due in the first half of 2022.
Alain Stoeckli, asset manager at Quadoro Doric, said the timing meant the building “will benefit from the improving market conditions we are experiencing”.
He said: “We are delighted to have agreed the funding for the refinancing and refurbishment proposals to work with York Capital, Berenberg and LS Estates to reposition the asset.”
The building is overseen by investment manager Doric Partners on behalf of its owner, GENO 7 Newgate Street GmbH & Co KG.
Doric acquired the building on behalf of its owner in 2005 for £63m from DB Real Estate, according to Radius Data Exchange. The sale price reflected a net initial yield of 5.3%.
A spokesperson for York Capital said: “We have worked successfully with LS Estates on another London project in the past and welcome the opportunity to renew this working partnership with them and starting a new one with Quadoro Doric.”
A spokesperson for Berenberg added: “We are very pleased to support Quadoro Doric and LS Estates in the value-added refurbishment of 7 Newgate Street with a bespoke funding package, arranged together with York Capital.”
Mark Swetman, managing partner of LS Estates, said: “This is the second transaction that LS Estates has partnered with funds managed by York Capital. It demonstrates a flourishing relationship, and all four parties collectively look forward to the successful development and lease up of 7 Newgate Street.”
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