Agreement involving ING and DBS hailed as one of largest in London market
More than £1bn of funding has been agreed to bankroll the redevelopment of One Spitalfields which is due to be carried out by Multiplex.
JP Morgan’s asset management business (JPMAM0 is leading the overhaul of the building which is currently occupied by A&O Shearman, formerly Allen & Overy.
Dutch bank ING and Singapore-based DBS Bank are providing a £1.016bn development loan to finance the work.
Michael Ramm, head of JPMAM European Real Estate, said: “This financing represents one of the largest development loans originated in the London office market.
“The strong lender appetite and availability of financing for this process is a clear demonstration of the team’s proven track record in executing large-scale development projects, as well as continued flight-to-quality, as lenders prioritise prime assets in prime locations anchored by institutional tenants.”
A&O Shearman is due to move out of the building, currently known as 1-10 Bishops Square, at the end of this year and into new offices at 1 Broadgate, the British Land scheme built by Sir Robert McAlpine and designed by AHMM.
Multiplex last month was told it had beaten remaining rivals Bovis and Mace to the work. A pitch from Sir Robert McAlpine was ruled out earlier in the summer.
McAlpine built the original Bishops Square scheme in 2005 under a design drawn up by Foster + Partners which has again been appointed to come up with new plans for the same site.
JP Morgan is billing the scheme as a refurbishment with some new build and under Fosters’ latest plans the job will retain and extend the current office building to provide 870,000sq ft of office and retail space, along with 70,000sq ft of new terracing.
The 11-storey building has already signed up finance firm Jane Street on a pre-let with the business taking 465,000sq ft.
The scheme was given planning last year by Tower Hamlets council and JP Morgan is understood to want to get started once Allen & Overy has moved.
Others working on the job, which is due to complete in 2029, include cost consultant T&T Alinea, project manager G&T, structural engineer AKT II and engineer Arup.
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