TH Real Estate and Allianz have partnered to provide €115.5m (£100m) in debt finance towards the development of 80 Fenchurch Street, a prime office property in London EC3, owned by funds managed and/or advised by Partners Group and currently being developed by YardNine, the property development and asset management company.
The innovative and flexible financing is a six-year bullet loan, divided into a three-year development and three-year term loan. The debt has been structured as a £135m development loan with a £20m increase on completion. The financing, arranged by TH Real Estate, has been underwritten by Allianz and TH Real Estate for €57.5m (£50m), 32% each.
80 Fenchurch Street will be a 14-storey landmark building for the City of London comprising 250,272 sq ft net internal area split into 238,593 sq ft of Grade-A office accommodation and 11,679 sq ft of retail space designed by multi-award winning architects, TP Bennett. The project offers innovative design through the inclusion of six landscaped roof terraces and floorplates ranging from 5,000 sq ft to 20,000 sq ft.
80 Fenchurch Street will be constructed to deliver BREEAM Excellent and Wired Score Platinum ratings and will benefit from the by-then newly operational Elizabeth Line (Crossrail) and Liverpool Street station.
Maxwell Shand, Founding Director of YardNine, said:
“The enthusiasm with which international institutions have backed 80 Fenchurch Street demonstrates not only the quality of this office development, but also their confidence in the development team.”
Christian Janssen, Head of European Debt, TH Real Estate, said:
“We are delighted to support Partners Group and YardNine in the successful development 80 Fenchurch Street. Through our own extensive in-house commercial real estate investment, development and financing expertise, we have structured an innovative facility that provides the operational flexibility and financial certainty required by Partners Group.”
Roland Fuchs, Head of European Debt at Allianz Real Estate, said:
“80 Fenchurch Street represents a landmark deal for the group as we diversify our debt programme into new products while maintaining a commitment to prime asset quality and location. The development exemplifies this approach, seeing us work alongside world-class partners to finance the construction of a truly first-rate asset in the heart of the City of London. This also marks our third investment in London within the last 18 months as the city becomes an increasingly important part of our global portfolio.”