Blackstone refis St Katharine Docks with £300m loan

By James Buckley - Friday, August 10, 2018 13:15

Allianz Real Estate and Brookfield have refinanced Blackstone’s St Katharine Docks development with a circa £300m loan.

The deal, coordinated by HFF Real Estate, sees Allianz providing the senior facility on behalf of a number of Allianz Group insurers. Brookfield, through the Brookfield Real Estate Finance Fund V, provided mezzanine financing.

The five-year, floating-rate deal represents the first time Blackstone has borrowed from both Allianz and Brookfield in Europe. Additionally, this marks the first transaction globally in which Allianz Real Estate and Brookfield have partnered together on a financing.

Last October, Blackstone withdrew the £435m sale of St Katharine Docks in favour of a refinancing of the marina complex near Tower Bridge. The debt was previously held by Morgan Stanley.

St. Katharine Docks, a 23-acre estate built in 1827 and central London’s only marina, has more than 500,000 sq ft of commercial space, featuring 80 companies, 24 bars and restaurants, 200 berths and 6,500 employees.

The debt provided by Allianz is split into a senior term loan and a capex line to redevelop Devon House, a 90,000 sq ft building on the estate. It is Allianz’ second UK transaction in 2018 – in April, Allianz lent £50 million as part of the £100 million development financing for 80 Fenchurch Street, a prime office property in the City of London. Both deals are part of Allianz’s European value-add growth strategy.

Nick Leslau bought the St Katharine Docks development for £156m through his Max Property Group before selling it as part of a wider sale of its property business to Blackstone for £448m in 2014.

The estate comprises International House, Commodity Quay and Devon House, with 70,000 sq ft of waterside restaurants, bars and shops and the 10-acre, 160 berth marina.

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