Canary Wharf Group (CWG) has secured a £610 mln (€739 mln) loan from clients and funds managed by Apollo.
The proceeds will be used to repay CWG’s bonds due in April 2025 and April 2026. The whole loan is secured in tranches against the majority of CWG’s 1.2. million ft2 (110,000 m2) retail portfolio which is currently 97% occupied.
Ben Eppley, partner and head of real estate credit, Europe at Apollo, said: ‘We are pleased to provide a scaled financing to Canary Wharf Group, secured against one of London’s premier shopping and leisure destinations. Our ability to transact in size and provide a tailored solution we think demonstrates why leading developers and real estate owners like CWG choose to partner with Apollo’s Real Estate Credit business.’
Canary Wharf’s retail and community offerings include 320 shops, over 80 bars, cafes and restaurants as well as eight grocery stores, pharmacies, health clubs and a school in addition to 16.5 acres of green and blue spaces including the recently launched Eden Dock.
In the last 12 months CWG has successfully completed more than £2 bn of refinancings, demonstrating the quality of its asset base and opportunities for growth, as well as strong support from lenders, according to the group.
In doing so, it has repositioned its balance sheet so that there are no material refinancings until 2028 and no significant office refinancing requirements until late 2029.
The refinancings include £564 mln secured on 1-5 Bank Street, home to Société Générale and the European Bank of Reconstruction and Development. The loan has been extended until November 2029.
CWG has also secured £132 mln on 15 & 20 Water Street – part of Wood Wharf, a cultural, leisure, retail and residential mixed-used environment expanding to the east of Canary Wharf which includes Broadwick Live, The CUBE, TRIBE Hotel, Dishoom, Patty & Bun, Third Space as well as the London Innovation Centre developed with Kadans Science Partner.
Other financing deals
Earlier this year, it also secured £341 mln on 25 Churchill Place, extending the loan until July 2030 on this high-quality office building let to EY and European Medicines Agency until 2040 and 2039 respectively. The group inked a loan of £80 mln for the construction of two new serviced apartment buildings offering short and medium stays in the Wharf for the first time at 3 & 15 West Lane, plus £76 mln of additional loan secured for One Churchill Place, together with a deal that will see Barclays invest in its UK headquarters for the long term.
Becky Worthington, chief finance officer for Canary Wharf Group, said: ‘We have achieved a significant amount of financing over the last 12 months and this latest deal with Apollo is testament to the strength of the proposition and our performance at Canary Wharf.
‘We are pleased that Apollo could provide a bespoke solution to address both near and medium-term maturities, which speaks to the quality of our portfolio and supports the stability and long-term nature of our capital structure.
‘We continue to attract new businesses to the Wharf including health, life sciences, education, VC start-ups and scale-up customers. Several customers have recommitted including Barclays, Morgan Stanley, Citibank and JP Morgan, and earlier this year, Revolut chose Canary Wharf as its global headquarters.
‘Canary Wharf is a thriving mixed-use neighbourhood with more than 3,500 people now living here and that figure is set to double over the next two years. Our retail, leisure and hospitality offer continues to grow with an ecosystem that includes childcare and schooling, universities, hotels, gyms and health centres.’
