26 October 2015, Kingston upon Thames, London CNM Estates, a community focused property investment and development firm, has today announced its strategic acquisition of Tolworth Tower, an iconic modernist tower located in a key area of investment and future growth within the Royal Borough of Kingston Upon Thames. The 22-storey structure was originally completed in 1964 and designed by renowned architect Richard Seifert & Partners - Seifert was a pioneer in bringing commercial towers to London. The project includes a popular Marks & Spencer Foodhall as well as 120-bed Travelodge Hotel.
CNM will invigorate new life into the Tower with an initial capital investment programme of some £10 million over the next year. In addition, CNM has lodged a planning application for apartments, office space and substantial upgrade to the public realm. The application is expected to be determined in the next few months.
Funds advised by Venn Partners LLP have provided a total of £42 million in senior acquisition and capital expenditure funding to finance the first phase of development. Venn was joined by Aprirose Real Estate Investment who has provided the mezzanine finance facility for the acquisition. The initial upgrades include new cladding on the North Tower, the conversion of the North Wing to provide much needed new housing within the Borough and upgrades to the office tower.
Natale Giostra, Head of Treasury and Capital Markets at CNM Estates, commented: “Venn Partners LLP and Aprirose Real Estate Investment have both demonstrated their understanding of our business strategy and long-term vision for the new phase of Tolworth Tower. CNM Estates has a substantial balance sheet and own resources to deploy in the acquisition of new development sites and regeneration investment opportunities. We have a current pipeline of over 20 sites, majority located in the Royal Borough of Kingston upon Thames and surrounding areas for an expected gross development value (GDV) of over £1 billion.”
Paul House, Partner Venn Partners LLP, commented: “Venn Partners is delighted to conclude this successful transaction on Tolworth Tower and in supporting CNM’s impressive business strategy to bring new life to this iconic asset. Coincidently, the tower is the 4th Seifert tower building financed by funds advised by us and we are pleased to play our part in the rejuvenation of London’s first commercial tower buildings”.
Gary Jones, Chief Operation Officer, Aprirose Real Estate Investment, commented: “This is a very unique transaction for us. We have a £1 billion property portfolio of our own but this is the first time we have provided a mezzanine debt facility for another property owner. This is an exciting development for our business. The development is in a key location and once we understood the full dynamics of the site and CNM Estates’s future plans, we felt it was a great opportunity to become involved in the project and we are interested in being a long term investor in certain aspects of the site”
Wahid Samady, Chairman CNM Estates, commented: “CNM Estates is committed to the long-term regeneration of Tolworth Tower and its surrounding area. The completion of the purchase of Tolworth Tower is an important milestone for CNM Estates. We are working closely with local businesses and communities to kick start the regeneration of Tolworth, an area which already provides great connectivity and amenity.
Brown Rudnick LLP and Fladgate LLP provided legal advice to CNM Estates; King & Wood Mallesons, Katten Muchin Rosenman LLP and Reed Smith advised the lenders.
Lambert Smith Hampton and Arcadis provided valuation and property due diligence. BCM Real Estate advised Aprirose Real Estate Investment.