Investec’s structured property finance team has agreed to provide a joint venture between Angelo Gordon and Hondo Enterprises with a £16.6 million, 36-month facility for the acquisition and redevelopment of a former car park in prime Central London into an office.

On completion, 12-13 Wells Mews in Fitzrovia will provide 22,800 sq ft of office space across six floors as well as three roof terraces; 40 secure cycle racks; and shower and locker facilities.

The JV acquired the asset with 38 years remaining on the lease and with support from Investec have negotiated an extension to 125 years with the freeholder.

Angelo Gordon is a privately-held alternative investment firm, managing approximately $35 billion across a broad range of credit and real estate strategies, and has been an Investec client since 2018. Hondo Enterprises is a property investment, development and asset management company specialising in opportunistic and value-add transactions in Central London. The two previously worked together on the acquisition of Brixton Market.

Daniel Carlisle at Investec said: “We are pleased to have supported Angelo Gordon and Hondo Enterprises on this exciting project. The way we use our cities is evolving and as car usage decreases we are increasingly seeing interesting and innovative ways to repurpose its infrastructure.

“The Covid-19 pandemic means businesses are looking for more versatile offices, with demand for space high in Fitzrovia and vacancy rates low. During lockdown, the client has been able to secure an earlier than expected extension to the headlease, which our expert team assisted with. The extension should provide a significant uplift in value to this prime asset.”