TH Real Estate and Allianz have partnered to provide €115.5m (£100m) 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.
The innovative and flexible financing is a six-year bullet loan, divided into a three-year development and three-year term loan. The financing has been structured as a €156m (£135m) development loan with a €23.1m (£20m) increase upon completion. The financing, arranged by TH Real Estate, has been underwritten by Allianz and TH Real Estate for €57.5m (£50m), 32% each.
80 Fenchurch Street will be a 14-storey landmark building for the City of London comprising 250,272 ft² (23,250 m²) net internal area split into 238,593 ft² (22,165 m²) of Grade-A office accommodation and 11,679 ft² (1,085 m²) of retail space designed by multi-award winning architects, TP Bennett. The project offers innovative design through the inclusion of six landscaped roof terraces and floorplates ranging from 5,000 ft² to 20,000 ft².
80 Fenchurch Street will be constructed to deliver BREEAM Excellent and Wired Score Platinum ratings and will benefit from the by-then newly operational Elizabeth Line (Crossrail) and Liverpool Street station.
"We are delighted to support Partners Group in the successful development 80 Fenchurch Street. Through our own extensive in-house commercial real estate investment, development and financing expertise, we have structured an innovative facility that provides the operational flexibility and financial certainty required by Partners Group," said Christian Janssen, Head of European Debt, TH Real Estate.
"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. "The development exemplifies this approach, seeing us work alongside world-class partners to finance the construction of a truly first-rate asset in the heart of the City of London. This also marks our third investment in London within the last 18 months as the city becomes an increasingly important part of our global portfolio."