JLL advises Capital Trust Group on refinancing of Kao One
Refinancing of the fully-let Grade A office asset in Harlow underlines lender appetite for stable and long-term rental income-producing assets
JLL has advised Capital Trust Group, a private equity, real estate and corporate finance advisory firm with operations in the UK, Europe, USA, the Middle East and North Africa, on the £17.5 million refinancing of Kao One, located in Harlow and consisting of 127,000 SF of accommodation. The loan was provided by Riyad Bank and was used to refinance a 4-year interest-only acquisition facility also arranged by JLL (HFF) in 2017.
The asset is 100% let to two tenants – Raytheon Systems Ltd and Arrow Electronics – which offer exceptional covenant strength and income security, with a WAULT of more than 10 years. Kao One forms part of a larger site, Kao Park, which lies within a government-designated investment zone. The asset provides 113,000 SF of office accommodation and 14,000 SF of data centre space.
The asset forms part of Capital Trust Group’s strategy of sourcing investments that will produce superior risk-adjusted returns for the Group and its clients. Kao One was acquired by the Group in 2017 for cash-on-cash return, and it will continue to be held for the same purpose. The £17.5 million cash-neutral refinancing represents 60% LTV and has been provided for a 5-year term.
JLL’s Debt & Structured Finance team who lead the financing included Senior Director Claudio V. Sgobba, Senior Analyst Hamish Gordon, and Analyst Elena Roberts.
Guy Hodgson, Director, Capital Trust Limited, commented: “We are pleased to have successfully completed this transaction with JLL which continues to build on our strong relationship and look forward to working with Riyad Bank in the coming years.”
Olga Aburdene, CEO, Capital Trust Limited, commented: “With this refinancing we continue to deliver the targeted outcome for investors of attractive high quality income with capital protection.”
Claudio Sgobba, Senior Director, Debt and Structured Finance, EMEA, JLL, said: “We’re delighted to have supported Capital Trust Group on this refinancing. Through a comprehensive financing process, JLL was able to secure the most accretive financing terms in the market to generate superior leveraged returns for Capital Trust Group.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.