Allianz and Brookfield refinance Blackstone's St Katharine Docks

Allianz Real Estate and Brookfield have refinanced the marina office complex in London’s St Katharine Docks owned by Blackstone.

In a deal coordinated by HFF Real Estate, Allianz has provided a five-year senior loan on behalf of a number of Allianz Group insurers, and Brookfield has provided mezzanine finance through its Brookfield Real Estate Finance Fund V.

It was reported last year that Blackstone was looking to sell the 23-acre St Katharine Docks. Its decision to refinance the asset marks the first time it has borrowed from both Allianz and Brookfield in Europe.

It is also the first time Allianz Real Estate and Brookfield have partnered together on a financing.

Blackstone purchased St Katharine Docks in 2014 from Max Property Group and has since enhanced the asset via capital improvements, attracting tenants such as WeWork, Clarkson, QA and Six Degrees.

The complex has 500,000sqft of commercial space and is home to 80 companies, 24 bars and restaurants.

The debt provided by Allianz is split into a senior term loan and a capex line to redevelop Devon House, a 90,000 sqft building on the estate.

It is the second UK transaction by Allianz in 2018. In April, the insurer lent £50m (€55.7m) as part of the £100m 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.

Roland Fuchs, head of European debt at Allianz Real Estate, said: “This is a landmark opportunity to refinance one of London’s unique estates. St Katharine Docks is a prime development that correlates with our focus on very high-quality, long-term assets owned by exceptional managers such as Blackstone.

“This deal, our second value-add transaction in the UK this year, also illustrates our increasing focus on London, which we believe will continue to be one of the world’s most influential and dynamic cities offering a compelling selection of prime assets for investors.”

 

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