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Brookfield Refinances CityPoint As Value Of Skyscraper Rises

Brookfield's CityPoint

Brookfield has refinanced the CityPoint Tower in the City with a new securitised loan, with the value of the building having risen by more than 5% in the past two years.

Morgan Stanley provided a £368M senior loan which was then securitised, according to CoStar. The loan has an interest rate margin of 2.15%. There is also a £91M junior loan secured against the 36-storey building, putting the overall loan-to-value at 74%.

Brookfield bought the 706K SF CityPoint in December 2016 through a complex deal which saw it buy junior debt secured against the building from Mount Kellett. Mount Kellett had bought the debt at a discount during debt restructuring negotiations in which previous owner Beacon Capital lost control of the building.

Brookfield paid £561M, and documents for the securitised loan show that the new value is £600M. That increase is because Brookfield has cut the vacancy rate from 12% to around 3%.