Post By: Birchwood Team
Crosstree and Bloom secure £29m loan for industrial estate repositioning
West London asset is first in duo’s new venture.
What? Birchwood has provided Crosstree and Bloom with a £29m loan.
Why? To finance the acquisition and repositioning of Fairview Business Centre.
What? next A comprehensive refurbishment will be undertaken to modernise and upgrade its EPC rating from D to A+.
Birchwood Real Estate Capital has provided a £29m loan to finance the acquisition and repositioning of Fairview Business Centre in Hayes by Crosstree and Bloom, Green Street News can reveal.
The 105,000 sq ft multi-let estate is the first asset within the duo’s £200m last-mile, industrial and logistics joint venture.
The quantum of the finance held against the asset, which was bought for £30m for A2 Dominion Group, represents 55% of its projected stabilised value. The loan from the WR Berkley-backed financier includes a substantial capex tranche, with Bloom and Crosstree aiming to carry out a comprehensive refurbishment of the estate and improve its EPC rating from D to a targeted A+ rating.
Lorna Brown, founder of Birchwood, said: “We are delighted to have supported Bloom and Crosstree on the financing of the first acquisition of their urban logistics JV and to have provided capex facilities which will enable the repositioning of Fairview Business Centre to deliver high-quality modern warehouses in key London locations. It has been a pleasure to collaborate again with BBS in delivering thoughtful financing solutions for high quality
sponsors.”
Adam Buchler, managing director of BBS Capital, which advised the borrower, added: “In the current market with transaction volumes lower than usual, the debt markets are extremely competitive for strong projects like this with a high calibre sponsor, well located real estate and robust business plan. Birchwood were selected not only for their competitive commercial terms but also for their flexibility and speed of execution.”