OakNorth Refinances Gaw Capital Partners' Landmark Old Street Property

OakNorth has provided a loan to Gaw Capital Partners to refinance existing debt secured against Gilray House, a mixed-use property in London’s Old Street district. For fintech and property finance professionals, the deal highlights the ongoing demand for sophisticated debt solutions for high-specification, refurbished commercial assets in prime "City Fringe" locations despite broader market volatility.

What was announced

The financing facility targets Gilray House, a 16,876 sq. ft. freehold asset situated on City Road, approximately 150 metres from Old Street station. The property comprises five floors of modern office accommodation alongside ground-floor and basement retail space. Gaw Capital Partners originally acquired the building in 2017 and recently completed an extensive refurbishment and extension programme in 2023. These works upgraded the site to Grade A office accommodation, featuring fully fitted workspaces, modern kitchen and shower facilities, and cycle storage.

The building now holds an EPC B rating, reflecting a focus on modern environmental standards and energy efficiency. This refinancing provides Gaw Capital with the flexibility to continue executing its long-term strategy for the asset, which is positioned to serve the evolving needs of businesses in one of London’s most established commercial hubs. The deal marks a continuation of Gaw Capital’s strategy to reposition real estate assets in key global markets, leveraging the property's proximity to the City of London and its established occupier base to capture demand for flexible, high-quality workspace.

"Gaw Capital Partners has an impressive global track record of investing in and repositioning commercial real estate assets, including some of London's most recognisable office buildings. Gilray House is a strong example of this expertise, having undergone a significant refurbishment to deliver high-quality, flexible workspace in a prime City Fringe location. Its proximity to Old Street station, modern specification and established occupier base make it well positioned to benefit from continued demand for flexible office accommodation. We are delighted to support Gaw Capital on this refinancing and look forward to building our relationship with the team."

Greg Manson, Director of Property Finance at OakNorth

The companies involved

OakNorth is a UK-based digital bank specifically designed to serve the needs of entrepreneurs and scaling businesses. Since its launch, the firm has focused on providing bespoke debt finance solutions that traditional lenders often overlook, particularly in the mid-market segment. The bank has established a significant presence in the property finance sector, supporting developers and investors across various asset classes including residential, commercial, and mixed-use developments.

Gaw Capital Partners, founded in 2005, is a multi-asset investment firm with approximately $35 billion in assets under management. The firm specialises in identifying and repositioning real estate assets across multiple sectors and geographies. Since establishing its presence in the United Kingdom in 2014, Gaw Capital has built a substantial commercial real estate portfolio in London. Its holdings include several of the capital's most recognisable landmarks, such as the Lloyd's Building, Milton Gate, Vintners' Place, and Harbour Exchange. The firm’s approach typically involves active asset management and refurbishment to drive value in core urban markets.

What FF News has reported before

OakNorth has maintained a high level of activity in both the lending and retail banking sectors. Recently, the bank participated in a £250M club loan deal to support EET Retail’s acquisition of SGN Retail. On the product side, the firm has expanded its consumer offering by entering the children's savings market with a Junior Cash ISA through a partnership with Bubble. Furthermore, OakNorth has sought to enhance its international capabilities for business clients by partnering with Wise Platform to accelerate cross-border payments for UK SMEs. This move aligns with broader trends in the sector, as Wise recently reported significant cross-border volume growth in its quarterly results.

What this means

This refinancing deal signals that while the broader commercial real estate market faces headwinds from hybrid work and high interest rates, there is still a robust appetite for "Grade A" assets. Lenders like OakNorth are increasingly selective, prioritising properties that have already undergone the "green" transition, as evidenced by the EPC B rating of Gilray House. This puts significant pressure on owners of secondary office stock who lack the capital to refurbish. The deal also suggests that the "City Fringe" remains a resilient sub-market, as businesses prioritise transport connectivity and modern amenities over traditional central business district locations. For the wider sector, it confirms that liquidity remains available for top-tier sponsors and high-performance assets.