TH RE/Allianz team up on £100m City development loan

By James Buckley - Monday, April 16, 2018 8:53

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TH Real Estate and Allianz have teamed up to write a £100m debt package to help finance the development of Partners Group’s 80 Fenchurch Street, a 250,000 sq ft office scheme in the City of London, CoStar News can reveal.

The flexible financing is a six-year bullet loan, divided into a three-year development and three-year term loan. The financing has been structured as a £135m development loan with a £20m increase upon completion. The financing, arranged by TH Real Estate, has been underwritten by Allianz and TH Real Estate for £50m (32%) each.

The financing is the first loan in Allianz Real Estate’s Enhanced Debt Programme, which involves the firm 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 an LTC range of 50-65%.

TH Real Estate has been active providing investment, transitional and development loans, structured as senior, mezzanine and whole loans with flexible leverage and with maturities from 2 to 20 years.

80 Fenchurch Street will be a 14-storey landmark building for the City of London comprising 250,272 sqft (23,250 sqm) net internal area split into 238,593 sqft of Grade A office space and 11,679 sqft of retail space designed by multi-award winning architects, TP Bennett. The project will have landscaped roof terraces and floorplates ranging from 5,000 sqft to 20,000 sqft. The EC3 development is owned by funds managed and/or advised by Partners Group, the global private markets investment manager.

80 Fenchurch Street will be constructed to deliver BREEAM Excellent and Wired Score Platinum ratings, and will benefit from the by-then newly operational Elizabeth Line (Crossrail) and Liverpool Street station.

“TH Real Estate is delighted to support Partners Group in the successful development 80 Fenchurch Street. TH Real Estate, through its own extensive in-house commercial real estate investment, development and financing expertise, have structured an innovative facility that provides the operational flexibility and financial certainty required by Partners Group,” said Christian Janssen, Head of European Debt, TH Real Estate.

“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.”

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