13 Feb 2019
Legal & General completes financing on One and Two Southbank Place
LGIM Real Assets (Legal & General) announces that it has provided, on behalf of its clients including Legal & General Retirement Institutional (LGRI), £420 million in long-term financing to support Almacantar on the debt refinancing of One and Two Southbank place in London.
One and Two Southbank place represent the commercial element of the 1.5 million sq ft. mixed-use development at Southbank Place, being delivered by Canary Wharf and Qatari Diar. They are the first two buildings at Southbank Place to complete, and form an integral part of the wider regeneration of the Southbank Place development.
One Southbank Place reached practical completion in August 2018, and has been handed over to long-term leaseholder Shell International. Shell has taken a 20-year lease and will make the premises their new UK headquarters.
In January 2019, Two Southbank Place was handed over to WeWork, which has taken a 20-year lease. Following fit out of the site, Two Southbank Place will become the world’s largest co-working space.
We are delighted to support Almacantar with an investment loan secured on One and Two Southbank Place. Almacantar has a strong track record in delivering high quality buildings across London and this transaction is a great fit for our pension fund capital.
Lorna Brown, Head of Real Estate Debt at LGIM Real Assets
This transaction, our largest UK real estate debt deal, provides diversity for our portfolio of investments backing our pension commitments. These buildings also both enhance the local area and enable the provision of a modern working environment.
This further demonstrates the powerful combined benefit of our in-house real estate lending capability in LGIM and our ability to deploy at scale, enabling us to deliver bespoke funding transactions.
Hayley Rees, Head of Direct Investments, Legal & General Retirement Institutional
We are delighted with this deal and the shared confidence that LGIM Real Assets and Almacantar have in One and Two Southbank Place. It was always our ambition to create a world class business destination. It is extremely satisfying that LGIM Real Assets, a global leader in investment, shares our view. It reinforces our long-held belief in London’s resilience and our confidence in the capital’s prime property market, at a time of short-term political uncertainties. The completion of the refinancing places us in strong position to explore further commercial and residential opportunities in London.
Jonathan Paul, Almacantar Finance Director