BLME provides £20m for Richmond office refurb

Bank of London and the Middle East has provided a £20.74m facility to Barwood Capital for the refurbishment of an office block in Richmond, south-west London. The financing provided to Barwood Capital’s Regional Property Growth Fund IV will fund the addition of another floor of office space plus roof terrace at Eton House. As part of the update, which aims to redesign the building with a focus on employee health and wellbeing, the building will be renamed Explore and will offer 4,200 sq ft of outdoor garden space at ground level. The site is targeting top ESG credentials, including BREEAM Excellent, EPC A and net zero in operation. Henry Wilson-Holt, associate director, real estate finance at BLME, said: “This transaction illustrates the opportunity to increase the value of a property through development financing that improves the sustainability credentials of assets.” He added: “We anticipate that we will see an increase in investor appetite for this type of project, as more and more businesses begin taking action to deliver on their sustainability commitments. After a wait-and-see period post-pandemic, businesses are now beginning to put in place new premises strategies, creating opportunities for investors to finance unique, high-quality spaces.” Adam Smith, asset management director at Barwood Capital, said: “Our approach in Richmond is to deliver a best-in-class product that will appeal to occupiers as they review their corporate aspirations and re-evaluate their expectations of the office environment.” Tim Vaughan, managing director at Brotherton Real Estate, the debt adviser on the deal, said: “The scheme delivers fully from an ESG perspective, which is critical for lenders and occupiers alike. There continues to be good debt appetite for the development of first class, sustainable, well-located offices.” The project is due for completion in Q1 2024. To send feedback, e-mail chante.bohitige@eg.co.uk or tweet @bohitige Image from Barwood Capital