Cain International has secured a £390 million (€447.2 million) development loan for The Stage, its £750 million mixed-use project in London’s Shoreditch.
Arranged by Lloyds Bank Commercial Banking, which is providing £97.5 million of the debt, the loan includes £97.5 million of funding from Investec Structured Property Finance and £97.5 million from Harel, the third largest insurance group in Israel.
The remainder is being provided by Bank of East Asia and the London branch of Chinese lender Bank of Communications. The three-year loan has a loan-to-value thought to be in the range of 50-55 percent.
“The pricing of the loan is in line with senior development finance for a project of this nature, residential-led but also with a commercial component,” Arrif Ali, principal at Cain told Real Estate Capital.
The loan will refinance a debt facility originally provided by Investec when the site was acquired and will also fund the ongoing construction activity until the project’s completion in around three years’ time. In 2005, Investec provided around £85 million for the acquisition of the site for £170 million. The debt was a four-year facility reflecting a LTV of 50 percent at around 2.2 percent interest.
The Stage scheme, set around the excavated and preserved remains of Shakespeare’s Curtain Theatre, will feature more than 400 new homes, 33,000 square feet of retail and leisure space including restaurants and cafés, an Equinox health club and 186,000 square feet of office space, which has been pre-let to WeWork.
Cain International, which invests in real estate through both equity and debt, is leading the consortium of investors in The Stage which includes McCourt Global, Galliard Homes, Vanke, Investec and The Estate Office Shoreditch.
“With elements of uncertainty in the UK market at the moment, it is encouraging to see continued confidence from domestic and overseas investors backing experienced sponsors on high-quality schemes in central London locations,” said Jonathan Goldstein, chief executive of Cain International.
“We’re proud to have coordinated and backed a significant funding agreement, which will transform this historic location into an iconic new development,” added Madeleine McDougall, global head of commercial real estate at Lloyds Bank.