Patron Capital provides loan for SevenCitiesLdn’s repositioning

Patron Capital has provided a £163 million (€195mln) senior whole loan to SevenCitiesLdn, backed by Seven Capital PLC, to support its £211 million (€252mln) strategic repositioning of 123 Victoria Street, a prime office building in Victoria, SW1. 

123 Victoria Street, London

The financing forms part of SevenCitiesLdn’s strategy to acquire central London offices with strong fundamentals and clear opportunities to enhance occupier experience.

The facility comprises a £148 million (€177mln) acquisition tranche and £15 million (€18mln) for refurbishment, representing 70% loan‑to‑cost and 59% loan‑to‑projected value. The first‑ranking senior loan has a term of up to four years, with interest serviced from the building’s income.

The transaction increases total lending from Patron Capital’s specialist real estate credit vehicle, launched in 2025, to £270 million (€323mln). Earlier loans included a senior refurbishment facility secured against a prime City of London office and a £20 million senior loan on a UK residential portfolio.

123 Victoria Street is a 244,000 sq ft freehold office and retail building in the heart of Victoria. Fully occupied and consistently near full occupancy for 12 years, the asset offers resilient income, strong transport connectivity and high tenant retention. SevenCitiesLdn identified the building as a rare opportunity to acquire a large, income‑producing office with a clear pathway to rental growth through targeted capex beginning in January 2027.

With ESG improvements already made by previous owners, SevenCitiesLdn plans to upgrade communal areas to enhance occupier experience and capture rental growth in Victoria, which continues to attract commercial tenants seeking well‑connected, amenity‑rich West End locations. Planned works include a new business lounge, a substantial terrace, an upgraded reception and improved end‑of‑trip facilities, aligned with SevenCitiesLdn’s strategy to deliver modern, hospitality‑driven workplaces that support wellbeing, productivity and long‑term retention.

Henry Randolph, partner, credit at Patron Capital, said the loan reflects the asset’s fundamentals and the strength of the sponsor and management team. He noted SevenCitiesLdn’s rapid progress since acquisition, including signing a new retail tenant, submitting key planning applications, negotiating a lease regearing and advancing refurbishment design with architect Anomaly.

Giles Hoare, director at SevenCitiesLdn, said the partnership with Patron Capital was seamless, with both teams completing the complex transaction within eight weeks of formal IC approval. He said the firm’s strategy centres on larger office transactions and expressed hope that this marks the beginning of a long relationship with Patron.

Patron Capital was advised by Hogan Lovells, Cadwalader, Addleshaw Goddard and Nexus RE. Seven Capital was advised by Eversheds Sutherland and BCLP. The loan was included in an extension of Patron Capital’s existing loan‑on‑loan facility with MUFG Bank.