Private investment company Cain Hoy and its joint venture partner, developer Sager Group, have secured a €254 mln (£190 mln) loan facility to finance the development of Islington Square, their 1.8 hectare (4.5 acre) mixed-use regeneration and development scheme in the heart of Islington, London.
The development loan, which is being provided by Lloyds Bank Commercial Banking and Investec Structured Property Finance (Investec SPF), will be used to bring the €535 mln (£400 mln) scheme fronting Upper Street in N1 to fruition. Investec SPF provided the initial refinance loan that will roll into the wider development facility, provided together with Lloyds, upon commencement of the main contract works. Lloyds Bank acted as Agent, Security Trustee, Hedge Provider and Loan Co-Ordinator and will provide hedging facilities as part of the transaction.
Set to complete in 2017, Islington Square will be a 46,451 m² (500,000 ft²) mixed-use shopping, leisure and residential destination which will regenerate the site of the former North London Mail Centre. Providing modern units for retailers, restaurateurs and leisure operators, as well as new homes, the development’s design will retain many of the key heritage features of the original site, designed around the concept of arcades, sympathetic to the local architecture.
Investec SPF has also taken a minority equity stake in the Islington Square project.
Source: Investec
