Almacantar seeks refi of £800m Southbank scheme

By James Buckley - Friday, January 12, 2018 9:15

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Almacantar is looking to refinance the debt on its fully pre-let, 500,000 sq ft development at One and Two Southbank Place, which is valued at around £800m, CoStar News can reveal.

The London developer is looking to put in place a new facility later this year to coincide with the completion of construction work at Two Southbank Place, which US co-working group WeWork is set to move in to.

Almacantar is looking for an LTV of around 50%, implying around £400m of debt, and hopes to better terms already on the table from a lender at a margin of 165bps.

The new facility will replace an existing £390m loan put in place by Cain Hoy Enterprises in August 2015 to finance Almacantar’s £550m forward purchase of One and Two Southbank Place in Waterloo from Canary Wharf Group and Qatari Diar.

Separately, CoStar News understands that Almacantar has also opted to pursue a refinancing of the debt secured against 125 Shaftesbury Avenue – also let to WeWork - over a £275m sale of the building. The firm had previously instructed CBRE to handle the sale.

Last June, WeWork signed a deal to take 280,000 sq ft at Two Southbank Place, in what will be the US co-working group’s largest office in London.

The deal saw WeWork’s portfolio of co-working offices expand from the 14 buildings it already has dotted around the capital, home to around 15,000 members.

Two Southbank Place will become one of WeWork’s key hubs for innovation and ideas, including more technical offerings such as 3D printers, laser cutters and machinery needed to develop prototypes.

Almacantar appointed CBRE and Cushman & Wakefield as letting agents Two Southbank Place at the end of 2015. The building will sit on a prime 5.5-acre site on the edge of the River Thames, opposite Whitehall and the Houses of Parliament and adjacent to London’s Waterloo station.

The development will be shared with the headquarters of Shell Petroleum, which will occupy One Southbank Place as well as the existing Shell Centre tower.

Two Southbank Place is designed by KPF Architects to exacting standards and will total c.300,000 sq ft over 16 floors. It will be ready for occupation in Q4 2018.

One Southbank Place will be the new headquarters for Shell International’s downstream business, full pre-let for 20 years and consists of 272,938 sq ft of office space and two retail units on the ground floor.

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