German financier Eurohypo has provided £86.7 mln (almost EUR 100 mln) financing to Max Property Group for the acquisition of St Katherine Docks, London. Max, listed on London's junior AIM market, acquired the asset in a joint venture with an overseas family trust for £156.3 mln in late June.

St Katherine Docks is situated on the Thames immediately adjacent to Tower Bridge and the Tower of London and comprises 46,000 m2 of accommodation within several office buildings together with additional retail and leisure uses. St Katherine Docks also comprises the only marina in Central London.

The estate generates an annual rent roll of £12.6 mln. Max Property said the vacancy rate of 12% offers the potential to improve the facilities and tenant mix through a rolling refurbishment programme. The five-year facility from Eurohypo was structured to support the purchase of the estate and for surplus funds to be used for capital expenditure.

The purchase increased Max's share of gross assets to £412 mln and net gearing to 33%. Following the acquisition, Max had £35 mln of uncommitted cash for future investments remaining from the initial £211mln raised in May 2009.