King’s Cross Central Partnership confirms £250million bank funding boost

Posted: Monday 14th January 2013

£250 million funding from four leading banks announced to fund three commercial buildings, the final phases of infrastructure (both south and north of the Regent’s Canal) and 272 apartments at King’s Cross, London, N1C

King’s Cross Central Limited Partnership, the entity behind the regeneration of King’s Cross, confirms that it has concluded a round of funding with four banks.

The facilities are:

  • A combined revolving credit and term facility of £75 million from Barclays Bank to deliver substantial infrastructure across King’s Cross and an investment loan for the office and retail accommodation in the Western Transit Shed, next to Central St. Martins College of Art & Design;
  • A facility of £71.5 million from Hypothekenbank Frankfurt AG London Branch (previously Eurohypo) to develop speculatively two office buildings with a combined area of c.200,000 sq ft on Pancras Square, next to King’s Cross Station;
  • Two development loan facilities totalling £104 million from Deutsche Postbank AG and HSBC on a club basis to develop ArtHouse and 1 Canal Reach; the first two private residential developments at King’s Cross, comprising 209 full market apartments and 63 affordable homes (the latter contracted to One Housing Group).

These facilities will build upon the Partnership’s £250million investment in infrastructure since 2009, comprising new roads (including King’s Boulevard), new public spaces (including Granary Square), a new bridge across Regent’s Canal, canal-side improvements, the Energy Centre and its associated district heating and distribution networks.

Sir David Clementi, Chairman of the King’s Cross Central Limited Partnership, said: “At a time when debt for property development is almost impossible to obtain, this backing from four leading banks is a massive vote of confidence in King’s Cross. It justifies the faith placed in the scheme by London & Continental Railways, DHL Supply Chain and Argent King’s Cross who, since the site works commenced four years ago, have collectively invested their own funds and the proceeds from early site disposals into the scheme.”

Jim Prower, Finance Partner for Argent, the Partnership’s asset manager, said: “We are obviously delighted and it is reassuring that we have been able to work with banks prepared to lend at sensible levels and competitive rates for the various aspects of the King’s Cross scheme. These facilities will allow continued investment at King’s Cross, both this year and next, and mean that the Partnership is able to crack on with development at the right time to attract some of the major commercial tenants whose leases elsewhere in London will terminate in 2014 and 2015.”

A combined revolving credit and term facility of £75 million from Barclays Bank to deliver substantial infrastructure across King’s Cross and an investment loan for the office and retail accommodation in the Western Transit Shed, next to Central St. Martins College of Art & Design;

A facility of £71.5 million from Hypothekenbank Frankfurt AG London Branch (previously Eurohypo) to develop speculatively two office buildings with a combined area of c.200,000 sq ft on Pancras Square, next to King’s Cross Station;

Two development loan facilities totalling £104 million from Deutsche Postbank AG and HSBC on a club basis to develop ArtHouse and 1Canal Reach; the first two private residential developments at King’s Cross, comprising 209 full market apartments and 63 affordable homes (the latter contracted to One Housing Group).

These facilities will build upon the Partnership’s £250million investment in infrastructure since 2009, comprising new roads (including King’s Boulevard), new public spaces (including Granary Square), a new bridge across Regent’s Canal, canal-side improvements, the Energy Centre and its associated district heating and distribution networks.

Sir David Clementi, Chairman of the King’s Cross Central Limited Partnership, said: “At a time when debt for property development is almost impossible to obtain, this backing from four leading banks is a massive vote of confidence in King’s Cross. It justifies the faith placed in the scheme by London & Continental Railways, DHL Supply Chain and Argent King’s Cross who, since the site works commenced four years ago, have collectively invested their own funds and the proceeds from early site disposals into the scheme.”

Jim Prower, Finance Partner for Argent, the Partnership’s asset manager, said: “We are obviously delighted and it is reassuring that we have been able to work with banks prepared to lend at sensible levels and competitive rates for the various aspects of the King’s Cross scheme. These facilities will allow continued investment at King’s Cross, both this year and next, and mean that the Partnership is able to crack on with development at the right time to attract some of the major commercial tenants whose leases elsewhere in London will terminate in 2014 and 2015.”

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