LBS Properties acquires £32m Old Street office set for refurbishment

Local developer and asset manager, LBS Properties has secured the 43,000 sq ft freehold Defoe Court building at 44 Featherstone Street EC1, for around £32m from Paris-headquartered Amundi Asset Management.

The deal reflects an initial yield of around 4.5 per cent and forms part of a wider ‘Amundi Collection’ portfolio disposal.

LBS Properties has simultaneously closed funding for the project with a £29m loan from GreenOak Real Estate, with plans to fully refurbish and potentially extend the building.

This marks the second lending deal undertaken with GreenOak by LBS. Mission Brotherton represented LBS on the Greenoak financing.

Martin Sheridan, principal of UK Debt at GreenOak, said: “GreenOak is pleased to support LBS in the acquisition and repositioning of Defoe Court.

“This transaction reflects the core principle of our lending activities, which is to enable our sponsors to implement their business plan. We look forward to continuing to support LBS.”

Situated just 150 metres from the iconic Old Street roundabout in the heart of the area’s thriving tech cluster, the building is currently let to five tenants and comprises 43,146 sq ft of accommodation, arranged over lower ground, ground and five upper floors.

Daniel Uzan of Mission Brotherton, added: “We are delighted to have closed the first deal with our US JV partners, Mission Capital, as Mission Brotherton.

“Richard and I have financed many similar office repositionings in the last 12 months and as such we were able to move quickly in targeting the most appropriate lenders and receiving their terms.

“GreenOak’s terms were competitive and they are a great partner for LBS on this opportunity. We look forward to building our relationship with both LBS and GreenOak in the near future.”

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