Allied London secures £120m loan for Spinningfields tower
The developer has agreed a £120m loan from Lloyds Bank, Pramerica and the North West Evergreen Fund to bring forward the 340,000 sq ft No.1 Spinningfields in Manchester.
Lloyds Bank is providing the senior debt of £100m, alongside Pramerica which is contributing £8m from its Real Estate Capital IV fund. The £12m from Evergreen is a mezzanine loan which bridges the gap between traditional senior debt and equity.
Last week accountant PwC was confirmed as the 50,000 sq ft pre-let anchor tenant in No.1 Spinningfields, leaving 290,000 sq ft available in the 20-storey office.
The SimpsonHaugh & Partners-designed block on the site of Quay House is under construction and is due to complete in 2017.
The loans are understood to be at an average interest of 6.5%, with the public sector money from Evergreen required to make the deal more affordable.
In June 2014 Allied London secured a £10m loan from Evergreen to fund the development of its 160,000 sq ft Cotton Building, also in Spinningfields.
CBRE Capital Advisors is the investment advisor to Evergreen.
Evergreen was launched in 2011 using European Regional Development Fund cash to stimulate the development market in the North West, outside Merseyside which has its own fund, Chrysalis.
The £50m fund is over-subscribed and Evergreen II is expected to be launched later this year.
Andrew Antoniades, director of CBRE, said: "While lending on developments in the regions is slowly returning, it remains incredibly selective. Such investments are critical for the regeneration of the North West and this loan provides a clear example of how Evergreen can help deliver viable schemes, that might otherwise miss out, by financing the funding gaps."
