Allianz Real Estate announced this week that it has provided close to £200 mln (€238 mln) in financing to a consortium of four sponsors to support the development of 105 Victoria Street.
The 500,000 sq ft (46,450 m2) development at 105 Victoria Street will become a mixed-use development with a range of amenities. In addition to floors of retail and office, there will be affordable working space for young businesses and a number of leisure features.
Welput, the central London office fund managed by BentallGreenOak (BGO), is the sponsor of 105 Victoria Street along with PSP Investments and existing investors in Welput, with BGO also acting as development manager. Construction will commence in Q3 2022 with expected completion late 2026.
Allianz said that the development matches the description of what the firm believes will be the post-pandemic asset: a prime location in a high-density city, sustainably operated and, with its wide range of service and amenities, a clear focus on user experience and well-being.
Sustainability features include 100% electrical power use and embodied carbon solutions, that will exceed both Royal Institute of British Architects (RIBA) targets and the Greater London Authority’s aspirational benchmark.
Shripal Shah, head of Real Estate Finance UK at Allianz Real Estate, said: ‘This transaction is a clear demonstration of our focus on prime financings. The quality of the development, the location and the sponsors have all contributed to the high attractiveness of this opportunity, the outcome of which will be a landmark building for the community and a superb workplace for tenants.’
Roland Fuchs, head of European Real Estate Finance at Allianz Real Estate, said: ‘After closing over €1 bn of transitional loans in Europe in 2021, this latest redevelopment transaction, to finance an asset with such strong ESG credentials, builds on that performance and positions our pan-European portfolio strongly in terms of meeting our long-term decarbonization targets and those of our investors.’
Allianz Real Estate’s European debt business reached AUM of €11.6 bn, up more than 13% year-on-year, as at end-of December. The pan-European financing platform continues to be active in 12 countries, diversified across the office, logistics, residential and retail sectors.
