Arora Group has secured a £175 million loan from Aviva Investors to support its acquisition of 102 Petty France, a landmark office building in St James’s, central London. The funding will assist Arora in its plans to reposition the asset, currently let to the UK Ministry of Justice, into a mixed-use development in the future.

Aviva Investors has provided a three-year facility, with funds drawn from several of its managed investment vehicles. The loan will support Arora’s purchase of the 14-storey, approximately 525,000 sq ft office building overlooking St James’s Park. The existing government lease, reportedly running for around three more years, is expected to generate surplus rental income that will help amortise the debt.

102 Petty France is a substantial freehold property situated adjacent to St James’s Park and close to key government and commercial institutions. Arora Group has indicated plans to convert the site from primarily office use into hotel and residential uses once the current lease expires, subject to obtaining the necessary planning consents over the term of the loan.