The Duke of Westminster’s property company, Grosvenor, has attracted the backing of six investors to fund its £700m Paradise Street retail development in Liverpool. The consortium is led by Hermes, which is one of the two largest equity investors alongside private Middle Eastern clients of Arlington Property Investors.
The other investors, as well as Grosvenor, are Redevco, Liverpool Victoria, and a member of the Ryan family, which founded Ryanair. The consortium will put over £250m of equity into the scheme.
On top of the equity, there will be between £350m and £450m of debt from a group of banks led by Royal Bank of Scotland.
Paradise Street is the largest retail-led development in the country. It will feature 1.6m sq ft of retail, 231,000 sq ft of leisure and 364 homes. It will comprise 30 new building, including two hotels.
The scheme has been awarded planning consent, and John Lewis and Debenhams have already been secured as anchor tenants. Completion is scheduled for 2008, to coincide with Liverpool’s year as European Capital of Culture.
All six investors are due to formally sign immediately. DTZ is advising Grosvenor. CB Richard Ellis is acting for the funding consortium.
Source: Freeman News/ Property Week