JLL’s Debt Advisory and Structured Finance team has advised Ghelamco Group on a £175m pari-passu financing for the acquisition and development of 225 City Road in Shoreditch, London
JLL has advised Ghelamco Group on the £175m financing for the acquisition and development of 225 City Road, London, EC1
JLL has advised Ghelamco Group on the £175m financing for the acquisition and development of 225 City Road, London, EC1, a freehold development site which will deliver the Arc, a Grade-A office led mixed-use scheme. The scheme has been designed by Stirling Prize-winning architects Allford Hall Monaghan Morris.
The senior loan was provided by Goldman Sachs with Tikehau Capital providing the mezzanine facility. The JLL debt placement team representing the borrower was led by senior director Claudio V. Sgobba, director Karan Mahajan and senior analyst Hamish Gordon.
225 City Road comprises of a 0.9-acre development site which has secured planning consent for a mixed-use scheme that will encompass circa 150,000 sq ft of Grade-A office space, 100 residential apartments and circa 7,500 sq ft of retail space.
The site occupies a prominent corner in the heart of Shoreditch, an area which is home to the third largest cluster of tech and web companies in the world including some of the sector’s largest brands. The area also serves as an incubator for start-ups in fintech, media, technology, fashion, music and art.
The development seeks to create a work and lifestyle based mixed-use scheme which will appeal to all age groups working in the Tech City Cluster, The City and City Fringe due its high tech and tailored design-led approach.
Marie-Julie Gheysens, Head of UK, International Business Development, Ghelamco, commented: “We are pleased to have secured financing for our first investment in the UK market and we look forward to continuing working to deliver this outstanding project.”
Chris Semones, Managing Director, Goldman Sachs, said: “We are excited to be supporting Ghelamco’s development of 225 City Road. This continues our strategy to originate and hold loans backed by high-quality real estate, delivered by best in class Sponsors.”
Maxime Laurent-Bellue, Head of Tactical Strategies at Tikehau Capital and Jean Odendall, Fund Manager of the Tikehau Special Opportunities funds, stated:“We are pleased to be working Ghelamco, who shares our entrepreneurial spirit and drive, on their first major project in the UK. We are also thrilled to contribute to the financing of this ambitious development, which emphasises Tikehau Capital’s continued commitment to the UK and constitutes a landmark transaction for our special opportunities fund. Our flexible and bespoke mandate enables us to provide capital solutions to complex situations, in a timely manner, and therefore to act as a long term and reliable financial partner.”
Claudio Sgobba, Senior Director, Debt and Structured Finance, EMEA, JLL, said: “We are pleased to have been able to support Ghelamco in structuring a facility that brings together three world-class real estate platforms for an inaugural, iconic transaction. This transaction is one the first ground-up development financings launched and completed during the Covid-19 pandemic and is indicative of the underlying strength of the central London market, appetite and availability of capital for the right sponsors and assets.”
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.