UK-based Investec Structured Property Finance and Bank HaPoalim, Israel’s largest bank, have written a £72 million (€82.13 million) loan to fund the development of a mixed-use scheme in London’s King’s Cross.
The loan was provided to LabTech Group, the digital and real estate development and investment business owned by Israeli billionaire Teddy Sagi. Alongside Investec’s £43 million commitment, £29 million of debt has been arranged with HaPoalim.
The development finance will back a 140,000-square-feet scheme on Camley Street, adjacent to King’s Cross Central. Planning consent has been granted to develop 121 one-, two- and three-bed luxury apartments and 29,000 square feet of co-working space. Initial work on the scheme has begun and completion is expected by 2020.
Last month, Investec provided £97.5 million for a £390 million development loan secured by Cain International to finance The Stage, its £750 million mixed-use project in London’s Shoreditch.
“We’ve been working hard to build strategic partnerships with like-minded lenders, so that we can support our clients beyond the scope of our own balance sheet,” said Simon Brooks, co-head of origination at Investec.
He added: “101 Camley Street and The Stage represent two substantial transactions being pursued by leading entrepreneurs.”