Post By: Birchwood Team
Lenders team up for £100m 1 Wood Street financing
Eversheds’ HQ was bought by Meadow Partners in February
What? Deutsche Hypo and Birchwood have provided Meadow with £99m of debt.
Why? To finance it’s acquisition of 1 Wood Street.
What next? The debt will have a term of three years with two additional one-year extension options.
Meadow Partners has secured around £99m of debt to finance its purchase of 1 Wood Street, Green Street News can reveal.
The investment manager has secured the loan from Deutsche Hypo and Birchwood, which have provided senior and mezzanine debt respectively.
The debt sits at a loan-to-value of 75% on Meadow’s £132m purchase price, with the mezzanine coming in at around 60%. The term of the loan is understood to be three years, plus two additional one-year extension options.
Meadow completed the purchase of the 168,465 sq ft building, which is fully let to law firm Eversheds, a month ago from KanAm. It is working alongside asset manager LBS.
Bouncing back
Following the completion of the acquisition James Willson, managing director (offices) at LBS Properties, said: “One Wood Street presented a rare opportunity to acquire a high-quality, reversionary asset in a core City of London location at an interesting point in the cycle.”
A rent review in the next two years is expected to result in a major uplift at 1 Wood Street and the steadily improving occupational market in the City has also resulted in an increasingly competitive lending market for value-add and core- plus assets.
The deal is the second time that Birchwood has teamed up with Meadow. The WR Berkeley-backed lender, which is led by former Delancey exec Lorna Brown, also financed its purchase of a £70m portfolio of Lidl stores in 2024.
