Specialist lender Cohort Capital has signed a £21m deal with developer DNA Real Estate to finance the purchase of Great West House, a 150,000 sq ft office building in Brentford, West London.
The deal signals both parties’ confidence in the continued strong performance of suburban offices, which are well placed to capitalise on the increasing popularity of ‘hub and spoke’ models of working – where staff have a shorter commute to a smaller office closer to home.
Brentford has emerged as a commercial centre in recent years and is home to blue chip companies including GlaxoSmithKline, BSkyB and Allianz.
While city centre offices have been slower to recover, demand for offices in nearby Ealing and Chiswick increased 200% last year, according to IWG.
The acquisition loan was a stretched senior facility with a bespoke PIK structure to assist with cashflow post-acquisition.
Matt Thame, founder of Cohort Capital, said: “Despite the continued popularity of hybrid patterns of working, demand and occupancy in suburban office locations remains extremely compelling, often far outperforming city centre locations.
“And in the context of a tight labour market and high inflation, it was important for us to be able to offer flexible terms to our client.”
Amar Randhawa, partner at DNA Real Estate, added: “Great West House boasts a fantastic location, transport connections and amenities which will serve Brentford well as it attracts more high-growth companies.
“With such an in-demand asset, being able to move quickly was of the utmost importance – and Cohort Capital certainly delivered.”
