TH Real Estate

£100m debt finance secured for 80 Fenchurch Street

TH Real Estate and Allianz have partnered to provide £100m in debt finance towards the development of a prime office property in central London.

The 80 Fenchurch Street scheme (pictured above) – owned by funds managed and/or advised by Partners Group – will be a 14-storey building for the City of London which will contain Grade-A office accommodation and retail space designed by architects TP Bennett.

The finance provided by TH Real Estate and Allianz comes in the form of a six-year bullet loan divided into a three-year development and three-year term loan.

TH Real Estate arranged the financing and both companies have underwritten the finance for £50m each.

The financing is the first loan in Allianz Real Estate’s enhanced debt programme, which involved the company 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 a loan-to-cost range of 50-65%.

"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."

The scheme will be constructed to deliver BREEAM Excellent and Wired Score Platinum ratings and will be located near the forthcoming Elizabeth line at Liverpool Street station.

"We are delighted to support Partners Group in the successful development of 80 Fenchurch Street,” said Christian Janssen, head of European debt at TH Real Estate.

“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.”

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