NatWest funds Regent House with £46m loan

By James Buckley - Monday, April 16, 2018 11:15

Mixed-use development and investment company Native Land has agreed a £45.8m development loan with NatWest for Regent House situated within The Portman Estate, W1.

The three-year term loan will be used to finance the demolition of an existing 1960s building and the construction of a new 125,000 sq ft high quality multi-use building comprising 43,000 sq ft of grade A office space over six floors, 24 private residential apartments, and four retail units.

The funding deal was secured with NatWest’s Structured Real Estate Finance Team, and consists of a £22.3m Residential Development Loan, used to fund the delivery of the residential units, and a £23.5m Speculative Commercial Loan to support the office space.

Alasdair Nicholls, Chief Executive at Native Land, said: “The financing deal with NatWest demonstrates our strong relationships with financial lenders, and their confidence in the value of our assets. Regent House also shows the diversification of Native Land’s core business into the mixed-use sector.

“This project makes up an integral part of The Portman Estate’s ongoing initiative to revitalise the immediate area, creating a prominent gateway to Marylebone and the West End, and delivering an attractive investment opportunity.”

Designed by Stiff + Trevillion, Regent House, is Native Land’s first development within The Portman Estate. Located on George Street, a short distance from Hyde Park, the project will benefit from the unique retail and leisure offer of Marylebone village, as well as outstanding transport links, including Paddington Crossrail Station.

Regent House’s office and retail spaces will cater to the needs of a range of industries, allowing for adaptability for a variety of occupiers. The project is designed to achieve BREEAM ‘excellent’ rating, WELL Silver and WIRED Gold score, making it a desirable work space for office occupiers demanding the highest standards in sustainability and digital connectivity.

Phil Hooper, Head of Real Estate Finance at NatWest, said: “We’re pleased that we’ve been able to structure a funding package that will help Native Land deliver this fantastic development. Our in-house structuring expertise enabled us to pull together the various residential, commercial and speculative elements of this deal which in turn removes a lot of the complexity for our customer. I have no doubt that with Native Land’s history of delivering high quality, innovative projects, the West End will soon have great new homes and commercial space.”

Native Land acquired Regent House from The Portman Estate in 2017 and entered into a long lease, which will entail the new retail units being leased back to the Estate upon completion due in 2020.

As part of the Section 106 Agreement, the project will contribute c. £1.5 million towards affordable housing provision in Westminster.

jbuckley@costar.co.uk

Get in Touch
+44 203 205 4600