- The capital will be used to refinance 10,688 sq.ft. of recently refurbished office and retail space at 82-84 Berwick Street;
- £5m of the capital has been provided under the British Business Bank’s Coronavirus Business Interruption Loan Scheme (CBILS), while the remaining £1.5m is non-CBILs and will enable the borrower to purchase other properties to build their growing portfolio;
- According to CoStar, leasing demand for office space in Soho remained steady in the months prior to the COVID-19 lockdown, largely due to the central location, high footfall and the arrival of the Crossrail next year;
- OakNorth Bank was introduced to the deal by Marc Champ, Managing Director of Wharf Financial Services.
OakNorth Bank – the UK bank powered by OakNorth – has completed a £6.5m loan (£5m CBILS and £1.5m non-CBILS) to a successful property group with over 40 years’ of real estate investment experience, to refinance a commercial property in Soho.
According to CoStar, leasing demand for office space in Soho remained steady in the months prior to the coronavirus outbreak. Soho was also the location of one of London’s largest deals of the lockdown period in May 2020, when foreign exchange firm Argentex took 11,000 sq.ft. at 19-25 Argyll Street on a 10-year lease. Demand has been supported by infrastructure improvements and more upmarket retail and leisure options, particularly along the eastern end of Oxford Street where Crossrail will arrive in 2021.
Marc Champ, Managing Director of Wharf Financial Services, commented on the transaction: “Considering this transaction was introduced during the height of lockdown, it is a credit to OakNorth Bank to have worked with such consistency and pragmatism. This was a complex transaction which needed all sides pulling together. The teams at OakNorth and Wharf have gone above and beyond to deliver a first class result for the customer and exceed their expectations.”
Max Saidman, Associate Director of Debt Finance at OakNorth Bank, continued: “Whilst the office market continues to face uncertainty due to the pandemic, there remains demand for chic and newly refurbished office space in Central London especially in the West End. The size, specs and location of this property make it attractive to both start-ups and established businesses, so we were delighted to get the introduction from Marc. The borrower group has over 40 years’ of property investment experience, so we hope to complete additional transactions with them in the not too distant future.”
ENDS
Notes to editors
About the Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is a demand-led scheme offering lending to smaller businesses with turnover of up to £45m. Invoice finance and asset finance facilities are available from £1k to £5m, while term loans and revolving credit facilities are available from £50k to £5m. The government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months. The scheme is due to close for new applications on 31 January 2021.
About OakNorth Bank plc
OakNorth Bank provides fast, flexible and accessible debt finance (from £500k to £50m) to fast-growth businesses and established property developers / investors. It has debt finance teams in London, Manchester, Bristol, Birmingham, Leeds and East Anglia.
Since its launch, the bank has:
• Lent over £4.6bn, directly helping with the creation of almost 16,000 new homes and more than 20,000 new jobs in the UK;
• Raised deposits from c.160,000 savers;
• Supported over 750 businesses across the UK with the debt finance to pursue their growth ambitions.
It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Visit wordpress-test-website.oaknorth-it.com for more information.
Contact
Valentina Kristensen, Director – Growth & Communications: [email protected] / [email protected] / 0757 234 9009