Legal & General provides €478.4m financing for London mixed-use scheme (GB)

Legal & General provides €478.4m facility for London office scheme (GB)

LGIM Real Assets, acting on behalf of its clients including Legal & General Retirement Institutional (LGRI), has provided €478.4m (£420m) in long-term financing to support Almacantar on the debt refinancing of One and Two Southbank place in London. Delivered by Canary Wharf and Qatari Diar, the 1.5 million ft² mixed-use development forms an integral part of the wider regeneration of the Southbank Place development. Completed in August 2018, One Southbank Place is currently let Shell International on a 20-year lease and will be used the company's new UK headquarters. In January 2019, Two Southbank Place was also handed over to WeWork, which has taken a 20-year lease. Following fit out of the site, Two Southbank Place will become the world’s largest co-working space.

 

Lorna Brown, Head of Real Estate Debt at LGIM Real Assets commented: “We are delighted to support Almacantar with an investment loan secured on One and Two Southbank Place. Almacantar has a strong track record in delivering high-quality buildings across London and this transaction is a great fit for our pension fund capital.”

 

Hayley Rees, Head of Direct Investments, Legal & General Retirement Institutional said; “This transaction, our largest UK real estate debt deal, provides diversity for our portfolio of investments backing our pension commitments. These buildings also both enhance the local area and enable the provision of a modern working environment. This further demonstrates the powerful combined benefit of our in-house real estate lending capability in LGIM and our ability to deploy at scale, enabling us to deliver bespoke funding transactions.”

 

Jonathan Paul, Almacantar Finance Director said: “We are delighted with this deal and the shared confidence that LGIM Real Assets and Almacantar have in One and Two Southbank Place. It was always our ambition to create a world-class business destination. It is extremely satisfying that LGIM Real Assets, a global leader in investment, shares our view. It reinforces our long-held belief in London’s resilience and our confidence in the capital’s prime property market, at a time of short-term political uncertainties. The completion of the refinancing places us in a strong position to explore further commercial and residential opportunities in London.”

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