German bank BayernLB said Monday it is providing a £ 400mln (EUR 510mln) five-year financing loan to the real estate investment trust Hammerson for its Bishops Square landmark building in the City of London. The project, which was valued at £ 597mln at the end of December 2007, offers a total 75,800 m[sup]2[/sup] of office and retail space. The transaction represents the largest real estate financing deal reached so far this year on a single property in the UK, according to BayernLB.
German bank BayernLB said Monday it is providing a £ 400mln (EUR 510mln) five-year financing loan to the real estate investment trust Hammerson for its Bishops Square landmark building in the City of London. The project, which was valued at £ 597mln at the end of December 2007, offers a total 75,800 m2 of office and retail space. The transaction represents the largest real estate financing deal reached so far this year on a single property in the UK, according to BayernLB.
The building was developed via a 75-25 joint venture between Hammerson and the City of London Corporation and completed in July 2005. In November last year, Hammerson said it paid £ 134mln for the acquisition of the long leasehold interest in the Norman Foster-designed building from the City of London Corporation. Hammerson entered into a joint venture with the Corporation to develop the scheme in 2002, with the final payment to be made following completion of the building and the determination of all costs.
The scheme generates an annual rental income of £ 34mln.
