Four Qatari banks have thrown their financial muscle behind the troubled Shard skyscraper development at London Bridge Station. Developer Sellar Property Group announced on Tuesday that Qatari Islamic Investment bank Qinvest is fronting the consortium. The other members are Barwa, Qatar National Bank and Qatari Islamic Bank. The four have each bought 20% of the issued share capital in the project.
Four Qatari banks have thrown their financial muscle behind the troubled Shard skyscraper development at London Bridge Station. Developer Sellar Property Group announced on Tuesday that Qatari Islamic Investment bank Qinvest is fronting the consortium. The other members are Barwa, Qatar National Bank and Qatari Islamic Bank. The four have each bought 20% of the issued share capital in the project.
PropertyEU reported last week that Syrian-born investor Simon Halabi had sold his one-third stake in the project to build a 310-metre glass-covered skyscraper to an unnamed group of Qatari investors. Around the same time property company CLS sold its 33% stake to the Qatari investors. CLS had warned in December that the turmoil in the financial markets has driven up the cost of borrowing. CLS said the 72-storey project, designed by Renzo Piano, would need EUR 575 mln in funding to proceed. The tower is expected to cost a total of EUR 1.4 bn while the total development including the surrounding area is put at EUR 2.7 bn.
QInvest's chief executive officer Professor Abdul Latif Almeer commented, 'Our investment in this £2 bn development not only reflects our admiration for what has already been achieved in getting the scheme to its present level, but also underpins our confidence in the London commercial real estate market.'
Qatar Islamic Bank chief executive officer Salah Jaidah added, 'Our investment in London Bridge Quarter represents a positive conclusion of nine months of negotiations, during which time QInvest and QIB took the lead and initiated the idea of creating the consortium of Qatari banks. It is also the first time that a consortium of Qatari banks has been formed to invest in an international project of this kind and we are proud to be part of it.'
Sellar, headed by Irvine Sellar and his son James, will continue to develop the tower and will also develop the surrounding area which is being renamed London Bridge Place. The majority of initial construction finance for the tower will be provided by the Qatari investors. According to James Sellar the consortium plans to 'fast track the construction of the Quarter enabling us to complete construction by the end 2011'.
