Gaw Seeks Cash For SW1 Project

Gaw Capital has appointed Eastdil Secured to source finance for its £500m acquisition of a pair of neighbouring office blocks in Victoria, SW1.

A Gaw-led consortium is seeking up to £275m to finance the acquisition as well as a capital expenditure facility allowing it to exploit the marriage value of the adjoining blocks of 123 and 151 Buckingham Palace Road.

The buildings have the potential for a reconfiguration of their ground floor shop to create a flagship store.

The consortium is seeking loans for a seven-year term and is expected to talk to lenders including MetLife and M&G.

The larger 123 Buckingham Palace Road is multi-let to tenants including Google, BskyB, PA Consulting and ENI Trading.

Google occupies around a quarter of the 350,000 sq ft building but is expected to vacate the space ahead of upcoming lease expiries over the next few years.

The 190,000 sq ft 151 Buckingham Palace Road is let to a series of public health bodies and the Inner London Probation Service.

Their secure covenants are expected to appeal to insurance company-backed lenders.

A source said pricing on the loan would be in the region of 230 bps over Libor.

Gaw’s acquisition of the buildings marks the second time the pair have changed hands in the past couple of years.

Divco West acquired 123 Buckingham Palace Road in 2014 while Malaysian hajj pilgrims fund Lembaga Tabung Haji bought 151 just over two years ago.

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