BSA Expands to London: Navigating UK Commercial Real Estate Finance
Barrow Street Advisors is proud to announce the opening of our London office at One Canada Square, Canary Wharf in Canary Wharf. This expansion marks a significant milestone in our mission to deliver institutional-grade capital advisory across global markets.
Why London
London remains one of the world's premier commercial real estate markets, attracting capital from across the globe. The city offers:
Deep Institutional Capital — Access to UK clearing banks, European lenders, and international capitalStrong Legal Framework — Transparent, well-established property law and lending practicesMarket Resilience — Consistent demand for Grade A assets across office, residential, and logistics sectorsThe UK Lending Landscape
The UK commercial real estate lending market differs from the US in several key ways that borrowers should understand:
Interest Rate Benchmarks
UK floating rate loans are typically referenced to SONIA (Sterling Overnight Index Average), replacing LIBORFixed rate terms tend to be shorter than US equivalents, with 5-year fixed being the market standardMargins vary by asset class, sponsor quality, and loan-to-value ratioLoan Structures
Senior Debt: Available from UK clearing banks (Barclays, NatWest, HSBC, Lloyds), European banks, and insurance companiesMezzanine Finance: Growing market for subordinated debt productsDevelopment Finance: Typically structured as phased drawdown facilities with profit share mechanismsBuild-to-Rent (BTR): An emerging asset class with dedicated lending products from specialist lendersKey Differences from US Markets
Lower typical LTVs (55-65% for investment, 60-70% for development)Shorter loan terms (3-5 years typical, vs 5-10 years in the US)Interest cover ratios (ICR) used alongside DSCR metricsStamp Duty Land Tax (SDLT) as a significant acquisition cost considerationOur London Team
Our London office is staffed by experienced CRE finance professionals with deep relationships across UK and European lending institutions. The team brings expertise in:
Cross-border transaction structuringSterling-denominated debt facilitiesUK regulatory and tax considerationsEuropean institutional lender relationshipsWhat This Means for Our Clients
With offices in both New York and London, Barrow Street Advisors can now offer:
Transatlantic Deal Execution — Seamless advisory across US and UK marketsExpanded Lender Network — Access to 2,500+ institutional lenders globallyCross-Border Expertise — Multi-currency facilities and international structuringLocal Market Knowledge — On-the-ground presence in both marketsLooking Ahead
The UK commercial real estate market presents significant opportunities for well-capitalised borrowers, particularly in:
Build-to-Rent Residential — Strong demographic demand and institutional appetiteLast-Mile Logistics — E-commerce driven demand for urban distributionLife Sciences — Growing sector with concentrated demand in the Golden TriangleGrade A Office — Flight to quality creating value in premium assets
For enquiries about UK and European financing, contact our team at contact@barrowstreetadvisors.com or +44 (0)20 7946 0958.