Tristan has issued a senior £180m loan – which has been funded by its TIPS One Debt Fund and a co-investment partner – to sponsor BGO and its joint venture partner Mission Street.
The facility is secured against a portfolio of life science assets in Oxford and Cambridge, which are being delivered by BGO and Mission Street. The three assets, which have a gross development value of around £310m, incorporate 300,000 sq ft of grade A specification institutional lab and office space for life
sciences occupiers.
“The transaction demonstrates our ability to write complex, large ticket loans utilising diverse sources of capital”
DAN POTTORFF, TRISTAN CAPITAL PARTNERS
The TIPS loan will fund the continued lease-up of two newly developed standing assets, and the development and fit-out works associated with a new purpose built scheme.
The portfolio includes The Press at 1 Station Road Cambridge, and Inventa in Oxford, which have been delivered. The development finance component of the Tristan facility will help deliver Fabrica, which is the first commercial science building in the UK to target a BREEAM Outstanding accreditation.
TIPS One deployed
TIPS One, a fund managed by Tristan Capital Partners, is now fully deployed after investing the roughly €500m it raised in 2022. Other loans in the debt fund’s book include Morgan Capital’s 21 Bloomsbury Street scheme, and the Manhattan Loft Gardens tower in Stratford.
Dan Pottorff, head of debt Investment at Tristan Capital Partners, said: “We are pleased to be working with BGO and Mission Street in the delivery of the highest quality life science assets in supply constrained submarkets in the Golden Triangle. This financing is a continuation of our strategy of lending to sponsors with proven track records of value creation and sector expertise.
“The transaction demonstrates our ability to write complex, large ticket loans utilising diverse sources of capital. The loan to BGO is Tristan’s largest to date and brings the annual total of debt investments deployed in the UK and Europe to €470m.”
The Oxford assets are the first life science buildings to be delivered in Oxford’s West End, and form part of BGO and Mission Street’s 1.5m sq ft life sciences development pipeline in key locations across the UK, including the Golden Triangle of Oxford, Cambridge and London.
Gareth Purcell, managing partner at BGO, added: “We’re delighted to have closed this financing with the Tristan team. Seeing material leasing momentum in our recently completed schemes in Oxford and Cambridge, we will be starting on site early in the new year with the development of Fabrica, our 135,000 sq ft new build development in Oxford’s West End.”
JLL advised on the financing deal.
