Investec Structured Property Finance has provided LabTech Group, the digital and real estate development and investment business owned by Israeli billionaire Teddy Sagi, with a £72 mln (€82 mln) loan to fund the development of a 140,000 sq ft (13,000 m2) mixed-use scheme in King’s Cross, London.
The facility includes £43 mln from Investec and £29 mln from Bank Hapoalim, Israel’s largest bank.
This scheme is located on Camley Street, adjacent to King’s Cross Central, and has planning consent for 121 one, two and three-bed luxury apartments and 29,000 sq ft of co-working space. The apartments will be let and operated by Labs Live, and the flexible office space will be provided under the Labs co-working platform.
Initial works have commenced on the scheme and practical completion is expected in 2020.
So far this year, Investec has arranged over £400 mln of development finance, across projects that will deliver 1,150 new residential units.
Last month, Investec raised £195 mln for a Cain International-led consortium for the Stage, a 550,000 sq ft mixed use scheme in Shoreditch with an anticipated gross development value of £750 mln.
The funds raised were part of a £390 mln club with five lenders where Investec provided a £97.5 mln commitment of its own alongside arranging £97.5 mln from Harel, the Israeli insurance group. Lloyds acted as coordinator for the facility.
Simon Brooks, co-head of origination at Investec, commented; 'We’ve been working hard to build strategic partnerships with like-minded lenders so that we can support our clients beyond the scope of our own balance sheet. 101 Camley Street and The Stage represent two substantial transactions being pursued by leading entrepreneurs. We are glad that with the relationships we have built with other lenders such as Bank Hapoalim and Harel, we have been able to build on our capability and support our clients.'