TH Real Estate and Allianz provide £100 million debt finance for 80 Fenchurch Street, London
TH Real Estate and Allianz have partnered to provide £100 million 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 global private markets investment manager.
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 £135 million development loan with a £20 million increase upon completion. The financing, arranged by TH Real Estate, has been underwritten by Allianz and TH Real Estate for £50 million (32%) each.
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%.
TH Real Estate provides a wide range of financing solutions, including 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 landmark building for the City of London comprising 250,272 sq ft (23,250 sq m) net internal area, split into 238,593 sq ft (22,165 sq m) of Grade-A office accommodation and 11,679 sq ft (1,085 sq m) 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 sq ft to 20,000 sq ft.
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."
Note: TH Real Estate renamed to Nuveen Real Estate in January 2019.Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. TH Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or Nuveen Alternatives Advisors LLC a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Nuveen Securities, LLC, member FINRA.