AXA Real Estate Investment Managers, MGPA and Eurohypo have set up a joint venture partnership to develop 6 Bevis Marks, a major new 160,000 sq ft (15,000 m2) office development in the heart of the City of London.
AXA Real Estate Investment Managers, MGPA and Eurohypo have set up a joint venture partnership to develop 6 Bevis Marks, a major new 160,000 sq ft (15,000 m2) office development in the heart of the City of London.
AXA Real Estate and MGPA have acquired the site on a 50:50 basis while Eurohypo, the lender to the previous owners of the site, will provide development finance towards the expected circa £115 mln (EUR 132 mln) total development cost. AXA Real Estate and MGPA will put up the equity.
The scheme will benefit from its close proximity to the major transport hub of Liverpool Street, where a new Crossrail terminus will be added in 2017 to the existing rail, underground and bus stations.
Construction is expected to commence at the beginning of 2012 with City Offices Real Estate (CORE) acting as development manager and, on completion, the scheme will comprise 160,000 sq ft of Grade A office space, together with 12,000 sq ft of retail on the ground floor. The asset is expected to be delivered in the autumn of 2013 and is targeting a BREAAM ‘Excellent’ sustainability rating.
The transaction marks the final investment for AXA Real Estate's Real Estate Opportunities Fund II which invests in high potential real estate assets, debt and preferred equity. MGPA's investment has been made on behalf of its Europe Fund III, a private equity fund which holds office and retail real estate assets in five countries across Europe.
Dan Smith, director at Eurohypo said: 'We are delighted to be working with AXA Real Estate and MGPA to put in place this innovative restructuring solution that will allow the further development of a major City of London property. This transaction further demonstrates our desire to recover value from distress.'
