A major property transaction in the centre of Birmingham has been financed using a £3.9 million bridging loan provided by Blemain Finance.
The 17 storey mixed use Quayside Tower on Broad Street was purchased towards the end of 2013 by Peng Global Holdings and a private Chinese investment partner.
The purchase of Quayside Tower is one of the first purchases of this size by Chinese commercial investments outside of London.
Standing directly opposite the International Convention Centre, the 133,000 sq ft building provides 96,916 sq ft of office accommodation over the upper floors and 36,071 sq ft of leisure space on the ground floor. It is currently let under 11 occupational leases with a weighted average unexpired lease term of 9 years.
Danny Waters, CEO of Enterprise Finance, who arranged the financing, said: “Running into the central shopping and business district, the area along the A456 Broad Street is a popular recreational area with a large number of bars, restaurants and hotels, representing a great investment opportunity.
“Larger bridging loans have become increasingly common in London, with several prominent deals at large hotels and developments hitting the headlines, but the Quayside Tower deal has demonstrated that they can be used anywhere across the country with equal success.”
Gary Bailey, sales director for Blemain Finance, said: “The purchase of Quayside Tower by Chinese investors is a huge vote of confidence in the commercial property sector in the city. For a case of this size it was vital that we worked closely with Enterprise Finance, drawing on experience and knowledge, to ensure that progress remained on track and that the customer’s aims were met within their expected timeframe.
“Bridging loans are ideal for these sorts of short-term property transactions, as they’re quick to arrange while securing purchases in fast-moving markets while longer-term funding is put in place later.”
