Brookfield And AXA Hunt £2B Of Debt To Take Profit On London Towers

Brookfield's 100 Bishopsgate

Brookfield and AXA Investment Managers are each looking for loans of more than £1B secured against two of the City of London’s biggest office buildings, which will allow them to take profits from development schemes.

Brookfield is seeking £1.23B to refinance a loan on the 1M SF, 40-storey 100 Bishopsgate, CoStar reported. The loan would comprise £950M of senior debt and £280M of mezzanine debt.

The building has an £850M loan secured against it, put in place in 2019, a financing that valued the building at £1.5B.

If the new financing has senior debt at the same loan-to-value ratio, roughly 55%, then the building would be valued at £1.7B. It cost Brookfield £800M to build, so the new debt would mean it has taken a £430M profit on the building, with the prospect of more to come if it sells at some point.

AXA is on the hunt for £1B of debt secured against the 1.3M SF 22 Bishopsgate, CoStar also reported. The building cost £1.3B to build and was developed using equity only from a consortium of investors: AXA, Singaporean fund Temasek and Canadian investors PSP and QuadReal. The financing could value the building at £2B or more.

Earlier this week, Apple agreed a deal to take more at the building, increasing its occupancy from 125K SF to about 200K SF. That deal would mean the building is more than 80% occupied.

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