US privately held investor Cain Hoy Enterprises is leading a consortium including Gailliard Homes to build a £750 mln (€1.02 bn) mixed-use development in London’s Shoreditch district.

US privately held investor Cain Hoy Enterprises is leading a consortium including Gailliard Homes to build a £750 mln (€1.02 bn) mixed-use development in London’s Shoreditch district.

The project, known as The Stage, covers a 0.93-hectare site including the remains of Shakespeare’s 16th-century Curtain Theatre, where Romeo and Juliet was first performed.

Plans include a 40-storey residential tower and more than 23,225 m2 of office, retail and leisure accommodation. The remains of the theatre will be excavated and preserved as a tourist attraction.

MG Properties, the real estate investment and development arm of McCourt Global, are also in the consortium, which will develop the site in partnership with Plough Yard Developments Ltd.

Plough Yard gained planning permission in 2013 to build the residential tower, but the project stalled while it searched for a funding partner. The developer will retain the freehold interest on the site and grant a new 250-year lease to the consortium.

Jonathan Goldstein, Cain Hoy’s head of European investments, said: ‘This is an historic site at the heart of one of Central London’s most vibrant areas. Shoreditch, home to the capital’s internationally famous "Tech City", is an exciting residential, commercial and investment destination.’

Last year Gailliard Homes and Cain Hoy established a joint venture to invest up to £225 mln in new UK residential projects over the next three years. Deutsche Bank provided a three-year corporate facility to Gailliard Holdings, facilitating the construction of projects with a gross development value of over £1 bn.

The consortium for The Stage project is being financed through a debt and equity package from Investec Structured Property Finance.

Property agents Allsop and CBRE advised on the deal. King & Wood Mallesons acted for the consortium, while Berwin Leighton Paisner acted for Plough Yard Developments.