CC nabs Canary Wharf property refinance mandate

Clifford Chance has guided Evans Randall through the refinancing of a major Canary Wharf property, triggered by a drop in the loan-to-value ratio.

Real estate finance partner Iain Morpeth and finance partner Robert Smith advised the client on its investment in 5 Canada Square, the European headquarters of Bank of America, which it sublets from Credit Suisse.

Evans Randall acquired the property in 2007, at the height of the market, for £452m, with around £350m worth of debt from Bank of Scotland. It is now estimated to be worth around £350m, and Evans Randall has had to inject further equity into its investment.

In what is increasing ­evidence of Middle Eastern interest in the London prime property market, Bahrain finance house Al Salam Bank was brought in on a £38m mezzanine tranche structured on an Islamic-compliant basis. It was advised by Herbert Smith partners Nadim Khan and Simon Price.

Private equity group ­Partners Group provided further capital, with partner Colin Morgan at Macfarlanes providing legal advice. The senior loan was provided by a big syndicate of lenders led by Bayerische Landesbank, advised by Addleshaw Goddard legal director Julie Rome. Hogan Lovells associate Vicky Carr advised the outgoing lender Lloyds Banking Group, the owner of HBOS.

This is not the first time that Evans Randall and Al Salam have invested together. They jointly acquired and then disposed of Addleshaw ­Goddard’s headquarters at Milton Gate in the City ­earlier this year (The Lawyer, 28 June).