CBRE Korea Successfully Leads £46 Million Refinancing for London's Cannon Green Building

-Advising on the refinancing of a Grade A office building in the heart of the UK's central business district
-Improved LTV and refinanced at competitive rates, significantly improving asset quality
-Demonstrates capability in guiding South Korean investors through global commercial real estate investment strategies

March 12, 2024 (Seoul) – CBRE, a global commercial real estate services company, today announced that it has successfully led the £46 million (approximately KRW 80 billion) refinancing of the Cannon Green Building in London, UK, which is operated by Kiwoom Asset Management.

The Cannon Green Building, located in London's central business district(CBD), is a Grade A office building that was built in 1960 and underwent a complete remodeling from 2016 to 2018, transforming it into a modern building. The building consists of 14 floors, including 2 basements and 12 floors, with a total area of 10,219 square meters, housing retail and facilities as well as offices. This building not only benefits from its prime CBD location but also holds a property value expected to grow in the future, as it was awarded the 'Best Architecture of the Year idn London' in 2019.

Kiwoom Asset Management acquired Cannon Green Building for KRW 197.5 billion in 2018, Kiwoom Securities and Hana Securities participated as beneficiaries, investing about 60 billion won and 30 billion won, respectively, and the remaining KRW 107.5 billion financed through senior loans. The refinancing was facilitated by a three-year maturity contract with Deutsche Hypo and Nord/LB, German financial institutions.

The successful advisory was led by CBRE Global's Debt & Structured Finance team, which specializes in developing asset and debt capital strategies, and connecting with various global capital sources to meet funding requirements. Since 2021, the team has achieved a significant track record of debt advisory amounting to €10 billion (approximately KRW 14 trillion) across 12 countries in Europe.

Elia Lee, the head of the Investment Business Team at Kiwoom Asset Management, “The advisory field known as ‘Debt Service’ may be somewhat unfamiliar in the domestic market, but thanks to CBRE providing accurate analysis and predictions about the local situation in advance, it was possible to start the refinancing process more quickly and extend the loan for this case.”

Tom Jeanes, Director of Capital Markets at CBRE Korea, “This is another example of how CBRE’s global platform can produce successful results for our clients in Korea. CBRE Korea works hand in hand with our colleagues around the world and this enables us to provide seamless support and control for Korean investors, particularly during this challenging time when investors are focused on fund extensions to hold assets until global markets recover.”