Pan-European developer HB Reavis has secured £127 mln (€146 mln) in financing for its debut development project in London, dubbed 33 Central.
The largest loan facility in HB Reavis' history has been provided by two German banks, pbb Deutsche Pfandbriefbank and Deutsche Hypothekenbank, new lenders in HB Reavis' portfolio of credit relationships. The facility has been already utilised and enabled to refinance equity spent by HB Reavis into the project.
Located in the City of London, 33 Central will provide 21,000 m2 of Grade A office space over nine floors when it is delivered later this summer.
'We are very pleased to open credit relationships with two new lenders, pbb Deutsche Pfandbriefbank and Deutsche Hypothekenbank on the London market, where we are actively increasing the scale of our operations,' commented Marian Herman, Group CFO at HB Reavis.
'This financing endorses the quality of 33 Central and demonstrates the trust financial institutions place in HB Reavis as a highly credible partner. The loan facility helped us optimise our capital structure, following significant divestments in 2016 that reduced our leverage levels,' Herman added.
HB Reavis acquired the site in late 2013 and commenced construction in mid-2014. In July 2016, the building was sold to Wells Fargo, the third largest bank in the US by assets. The deal was one of the largest single office deals in the City of London market in 2016, according to the developer.
It was also one of the first deals to go through in the wake of the EU referendum vote.
The building is designed by British architecture practice John Robertson Architects, and is targeting a BREEAM Excellent rating for its sustainable design.
