Redevco invests €55m for office redevelopment in London

Redevco's new Real Estate Debt platform has made its first investment, a £47.5 mln (€55.5 mln) loan for the redevelopment of 10 Salisbury Square in London. 

This loan, facilitated by Brotherton Real Estate, supports Original Works, a new platform backed by Invesco Real Estate and Simten, in refurbishing and expanding the 5,202 m2 office building to meet high sustainability standards. 
The project involves a complete renovation and expansion of the building, aiming to create premium, healthy, and modern office space that meets top sustainability standards, including an EPC A rating and BREEAM Outstanding certification.
This investment reflects Redevco's strategy of financing the improvement and construction of sustainable buildings across key European markets, capitalizing on growing borrower demand for such funding. 
Neil Slater, CEO of Redevco, commented: “Our expansion into real estate debt is an important addition to our core investment capabilities. This landmark first loan embodies our mission of transformative real estate and building value for investors.” 
Richard Craddock, head of Real Estate Debt Redevco, added: “We are delighted to be supporting Invesco and Simten’s Original Works platform through this financing, which squarely aligns with our strategy to fund best-in-market, future-aligned assets, that deliver sustainable outcomes.” 
Mike Rayner, director of Original Works, added: “This facility provides us with a bespoke financing solution that allows us to execute on our plans for 10 Salisbury Square. We look forward to creating a unique building that caters to increasing occupier demand for high-quality, sustainable workspaces.”  
Ben Rustin, director of Brotherton Real Estate, added: “There is strong appetite from lenders funding brown-to-green office development in prime locations. Due to a reduction in the development pipeline, the availability of best-in-class sustainable space drives continued upward pressure on rental growth, creating an attractive proposition for funders.”
The loan is structured as a Green Loan, adhering to LMA principles.
Brotherton Real Estate, Burges Salmon, and Herbert Smith Freehills advised Original Works on the financing deal, while Stephenson Harwood and Knight Frank advised Redevco.