Cain International has provided a £109 million development loan to Barings and LBS Properties for the office development at 135 Park Street in London’s Southbank.
Located next to the Tate Modern and Shakespeare’s Globe, Barings and LBS Properties have planning consent for the demolition of the existing buildings and subsequent development of 146,334 sq ft of Grade A office space, arranged over 11 upper floors, as well as ancillary retail.
The joint venture partners are highly focused on the ESG credentials of the completed building and are targeting a minimum of BREEAM ‘Excellent’, with aspirations to achieve “Net Zero Carbon”.
The forthcoming office development has been designed by world-renowned architects Squire & Partners, with 90% of the floor space designated for traditional office use. The remaining space is to be used as affordable workspace. Demolition work is due to commence in Q3 2021.
“We believe that offices which place an emphasis on sustainability like 135 Park Street are extremely important and will play a critical role in the future success of leading organisations and cities,” said Matteo Milan, Principal at Cain International. ”We are pleased to be working with such highly regarded sponsors to support the delivery of a new standard of sustainable office space in London. There is no doubt that the asset class is integral for inclusion, diversity and innovation initiatives, as well as developing and fostering both talent and corporate culture.”
Darren Hutchinson, Head of UK Real Estate Transactions and Managing Director at Barings, said: “We acquired this development project having recognized the attractive fundamentals of the local market, the lack of Grade A office space available and the unique opportunity it offered to create a new breed of sustainable work space in a sought after location. This development loan from Cain will allow us to realize our strategy and ambition for this site to its full potential and we look forward to working with Cain and LBS in the months ahead.”
Nick Crawford, Managing Director of LBS Properties Ltd, commented: “We are delighted to have secured financing from Cain International to support the delivery of this best in class, highly sustainable office building of scale in one of London’s most attractive submarkets. The development will set the benchmark as a forward-looking office building, fit for a fast-evolving market, with tenant experience our priority from day one, a vision we feel the team at Cain shares completely.“
JLL advised Barings and LBS Properties on the financing, led by Senior Director Edward Daubeney and Director Andrew Hornblower, supported by Senior Analyst Bart Smith and Analyst Tarun Mehta.