Patron Capital, one of Europe’s leading value-add and opportunistic real estate investment managers, has completed its first direct lending deals following the launch of its real estate credit business in 2025. The two loans, totalling £107 million, comprise an £87 million senior refurbishment facility secured against a prime City of London office asset, and a £20 million senior loan on a UK residential portfolio.
The transactions have been completed following the appointment of Henry Randolph as Partner, who joined from CBRE to oversee Patron’s expansion into real estate credit, and the establishment of a Patron Capital Credit SMA. This forms part of Patron’s long‑term strategic partnership with Mitsubishi Estate Group’s global real estate investment management platform, Mitsubishi Estate Global Partners, which provides institutional backing for the firm’s growth into new subsectors. The Credit SMA is a discretionary Patron vehicle, enabling swift execution of new loans.
The first loan is an £87 million, three‑year senior refurbishment facility for Juxon House, a 122,000 sq ft prime office building at Paternoster Square, adjacent to St Paul’s Cathedral. The borrower is an SPV owned by GR Life Style Company Limited, a Hong Kong listed global real estate investment company. The facility refinances a former loan and fully funds a £26 million capital expenditure programme to reposition the asset, including the refurbishment of approximately 35,000 sq ft of recently vacated top floor office space and attached private terrace to a Grade A standard.
With the loan providing full funding for refurbishment, it gives the borrower the runway to execute its business plan without having exposure to short term market timing. Patron worked closely with the borrower throughout the underwriting process, including on construction tendering and design development, with its investment and in‑house construction teams involved.
Patron has also provided £20 million of finance to Signal Capital, in the form of a three‑year senior whole loan, secured against an income‑producing UK-wide residential portfolio. The loan was originated through a direct relationship between Patron and Signal. The deal was ready to complete within four weeks from first review to closing, with speed, flexibility and the ability to adapt to evolving transaction dynamics.
Patron’s credit business is targeting £20 million to £100 million whole loan, and sub-£25 million mezzanine lending in the UK and selected European geographies including Spain, Portugal, Germany, the Netherlands, Ireland and the Nordics. Lending will support value creation strategies spanning value add, refurbishment, and development, for asset classes where Patron’s equity business has high levels of expertise.
Stephen Green, Senior Partner at Patron Capital, said: “These deals show we are delivering what we set out to when we launched Patron’s credit business. We are leveraging our 26-year track record in value add and opportunistic investment in Europe to work with borrowers, taking a granular approach to underwriting development, refurbishment, value-add and operational strategies.”
Henry Randolph, Partner, Credit at Patron Capital, said: “These are two very different loans that illustrate the range of opportunities we are targeting through our credit platform across sectors, from value‑add situations where our equity and development expertise is a genuine differentiator, to time sensitive transactions where speed and agility really matter. We are actively looking at additional opportunities from ground up development through to investment lending, with a particular focus on mid-market whole loan and mezzanine lending where we can build strong, long‑term borrower relationships.”
The facilities are part funded through a loan‑on‑loan structure with MUFG Bank, Ltd. with Patron retaining control over loan structuring, asset management and borrower relationships. Advisers on the transactions included Addleshaw Goddard, Hogan Lovells, Newmark, and Nexus RE. GR Life Style retains Savills as Development Manager and Leasing Agent on Juxon House.
Media Enquiries to:
Polly Warrack/James Carnegie t: +44 (0)7827 486224
SEC Newgate e: patron@secnewgate.co.uk
About Patron Capital Partners
Patron represents approximately €5.5 billion of capital raised across funds and related co-investments, investing in property, corporate operating entities whose value is primarily supported by property assets and distressed debt and credit related businesses.
Since it was established in 1999, Patron has undertaken more than 200 transactions across 117 investments and programs involving over 9 million square metres in 17 countries, with many of these investments realised.
Investors represent a variety of sovereign wealth funds, prominent universities, major institutions and private foundations located throughout North America, Europe, Asia and the Middle East. The main investment adviser to the Funds is Patron Capital Advisers LLP, which is based in London, and Patron has other offices across Europe including Barcelona and Luxembourg; the group is comprised of 68 people, including a 43-person investment team.
Further information about Patron Capital is available at www.patroncapital.com
