Mixed-use development and investment company Native Land has agreed a £45.8 mln (€53 mln) development loan with NatWest for its Regent House development situated within the Portman Estate, London W1.
The three-year term loan will be used to finance the demolition of an existing 1960s building and the construction of a new 125,000 ft2 (11,600 m2) multi-use building comprising 43,000 ft2 of office space over six floors, 24 private residential apartments, and four retail units.
'The financing deal with NatWest demonstrates our strong relationships with financial lenders, and their confidence in the value of our assets. Regent House also shows the diversification of Native Land’s core business into the mixed-use sector,' said Alasdair Nicholls, chief executive at Native Land.
'This project makes up an integral part of the Portman Estate’s ongoing initiative to revitalise the immediate area, creating a prominent gateway to Marylebone and the West End, and delivering an attractive investment opportunity.'
The funding deal was secured with NatWest’s structured real estate finance team, and consists of a £22.3 mln residential development loan, used to fund the delivery of the residential units, and a £23.5 mln speculative commercial loan to support the office space.
The project is designed to achieve BREEAM ‘excellent’ rating, WELL Silver and WIRED Gold score.
Native Land acquired Regent House from the Portman Estate in 2017 and entered into a long lease, which will entail the new retail units being leased back to the Estate upon completion due in 2020.
As part of the agreement, the project will contribute c. £1.5 mln towards affordable housing provision in Westminster.