Investec enters The Stage with finance for £750m London scheme

Investec Structured Property Finance has provided around £85m for a Cain Hoy consortium’s £170m acquisition of the east London site for The Stage. The debt is a four-year facility reflecting a loan-to-value of 50% at around 2.2% interest.

Investec Structured Property Finance has provided a debt and equity package for a Cain Hoy consortium’s £170m acquisition of an east London development site.

The Stage scheme in Shoreditch 2The debt will part-fund the transfer of The Stage, a 550,000 sq ft mixed use development in London’s trendy Shoreditch area, to the consortium.

Investec has also taken an additional equity stake in the venture. The scheme’s estimated gross development value is £750m, and includes 250,000 sq ft of offices and a 40-storey residential tower and a heritage visitor centre.

Investec’s equity funding is a move typically reserved for the best opportunities with its best clients. It will also provide a development facility once the consortium hits its pre-construction lettings and sales targets.

“This is an historic site at the heart of one of Central London’s most vibrant areas. Shoreditch, home to the capital’s internationally famous ‘Tech City’, is an exciting residential, commercial and investment destination,” said Jonathan Goldstein, Cain Hoy’s head of European investments.

“Alongside other investments such as Islington Square and Mill Harbour, this deal further highlights our ability to act decisively to deploy.”

The Stage will incorporate the remains of Shakespeare’s 16th century Curtain Theatre, where Romeo and Juliet was first performed.

The 2.3-acre site is next to Brookfield Property Partners’ planned development for Amazon’s new European headquarters. Principal Place will provide the online retailer with a total capacity for over 5,000 staff in London.

The deal will see Plough Yard Developments retain its freehold interest while granting a new 250-year lease to the consortium which also includes Galliard Homes and MG Properties.