Goldman Sachs has provided an £875m (€1bn) loan to help fund the Olympia London Exhibition Centre regeneration project.
Deutsche Finance International (GFI) and Yoo Capital said the loan from the merchant banking division of Goldman Sachs, together with equity backing already in place from German institutional investors Bayerische Versorgungskammer and Versicherungskammer Bayern, the £1.3bn Olympia London project is now fully funded.
Olympia London is situated on a prime 14-acre freehold site in West London. Each year its welcomes more than 1.6m visitors and hosts over 200 events.
The project, which will see the full redevelopment of the site, including the existing exhibition halls, with 1.3m sqft of additional commercial space being created, is due to begin this quarter.
Chris Semones, managing director at Goldman Sachs’ merchant banking division, said: “The history, heritage and location of this development, and the clear potential it holds, present a compelling investment case and we are very pleased to be partnering with DFI and Yoo Capital to support what will be one of the most exciting projects in London over the coming years.
“This transaction continues our strategy for Real Estate Credit Partners III to originate large loans to hold against high-quality projects with excellent sponsorship.”
John Hitchcox, chairman of Yoo Capital, said: “This is a boost for London and a clear indication of investor confidence in this transformative project to regenerate an iconic landmark.
“We’re moving into a pivotal year for the redevelopment, and with the finances of the exhibition business, investors, as well as local community stakeholders, now safeguarded, we can look forward to delivering a destination that showcases London at its very best, with culture and creativity right at its core.”
Gavin Neilan, co-founder and co-managing partner at DFI, said: “To have secured a commitment of this level from Goldman Sachs is a compelling endorsement of the Olympia project, and indeed of the long term outlook for London as a global tourist and business destination.
“We are very grateful for the ongoing support of all our funding partners and, with the development now fully funded, we have a solid foundation to move forward with our plans to transform this iconic location and unlock Olympia’s enormous potential.”