A joint venture between Helical and AshbyCapital has secured a £140m facility to finance the development of 33 Charterhouse Street in London from Allianz.
The facility has a four-year term, with the option to extend to a fifth year. It is anticipated that the first drawdown will be in Q3 2020, from which point all future development costs will be fully funded by the facility.
Acquired by the joint venture in 2019, 33 Charterhouse Street is a site located adjacent to Farringdon Station on the Elizabeth Line and has planning permission for the development of c. 200,000 sq ft of office space. The building, which is targeted to complete in Summer 2022, will be opposite the new Museum of London and provide 10 floors of office space and three ground floor retail units.
The joint venture is also announced that it has exercised the option under the Development Agreement with The City of London to secure a new 150-year lease. The design and build contract with the principal contractor is expected to be signed shortly.
“We are pleased to have arranged this facility with Allianz, a new lender to Helical, particularly during the current uncertainty created by Covid-19. We look forward to working with them over the coming years as we set to work on delivering this exciting development opportunity,” SAİD Tim Murphy, Finance Director of Helical.
Charles-Etienne Lawrence, Investment Director at AshbyCapital, commented: “Securing this facility is a testament to both the quality of our scheme and the strength of the sponsors. We are delighted to be partnering with Allianz and look forward to delivering a best-in-class building, which will contribute to the wider regeneration of the area.”
Roland Fuchs, Head of European Real Estate Finance for Allianz Real Estate, commented: “We remain convinced that high-quality, future-thinking and best-connected office schemes in global cities such as London will continue to represent attractive financing opportunities for our investors. This, in combination with one of the most exciting submarkets in London and profoundly experienced project partners, amounted to an appealing debt investment story for Allianz.”