TH Real Estate and Allianz have partnered to provide £100 mln (€115 mln) 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 developed by YardNine.
The six-year 'bullet loan' has been divided into a three-year development and three-year term loan, according to TH Real Estate, which arranged the financing.
The £135 mln development loan, arranged with a £20 mln increase upon completion, has been underwritten by Allianz and TH Real Estate for £50 mln (32%) each.
'TH Real Estate is delighted to support Partners Group in the successful development 80 Fenchurch Street,' said Christian Janssen, head of European debt, TH Real Estate.
'TH Real Estate, through its own extensive in-house commercial real estate investment, development and financing expertise, have structured an innovative facility that provides the operational flexibility and financial certainty required by Partners Group.'
The financing is the first loan in Allianz Real Estate’s enhanced debt programme, which involves the firm expanding its debt lending activity to provide stretched senior and junior financings with LTVs of up to 75%.
It also includes development loans covering repositioning or refurbishment of assets as well as ground-up construction at an LTC range of 50-65%.
'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,' said Roland Fuchs, head of European debt at Allianz Real Estate.
TH Real Estate's loan services include investment, transitional and development loans, structured as senior, mezzanine and whole loans with flexible leverage and with maturities from 2 to 20 years.
80 Fenchurch Street will be a 14-storey scheme comprising 250,272 ft2 (23,250 m2) net internal area split into 238,593 ft2 (22,166 m2) of office accommodation and 11,679 ft2 (1,085 m2) of retail space designed by architects, TP Bennett.
It is targeting BREEAM Excellent and Wired Score Platinum ratings, and will benefit on launch from the by-then operational Elizabeth Line (Crossrail) and Liverpool Street station.