Banks offer £190m of funding for Canary Wharf office space; an impressive 23 storey construction at Churchill Place.
Funding has been provided by a selection of banks to construct new Canary Wharf office space.
Deutsche Pfandbriefbank AG, Barclays Bank, the Royal Bank of Scotland and Lloyds TSB have granted a £190m development and investment loan to Canary Wharf Group for the project at Canary Wharf, which will see construction begin at the last tower in the original London Docklands regeneration project.
The commercial property at 25 Churchill Place will compromise 500,000 sq ft of space, spanning 23 storeys, half of which have already been pre-let to the European Medicines Agency (EMA) who currently use space at and 11 Westferry Circus.
EMA will use the Canary Wharf office space rent-free for three years in exchange for fitting out the building, with the agreed rent being £46.50 per sq ft on a 25 year lease starting January 2015. The company will also have the option of renting an extra four floors, each around 27,500 sq ft.
Canary Wharf Managing Director of Finance Peter Anderson said: “We are delighted to have concluded this facility in the current difficult financial market. It shows that with a good consortium of lenders and the right project it is still possible to raise significant construction funding.
“We can now start construction in early 2012 knowing we have secured all necessary finance.”
Construction on the Canary Wharf office space is expected to be complete by the end of 2014 with Churchill Place expected to be one of the most energy efficient offices on the Canary Wharf Estate to date.
Environmentally-friendly features will include air-conditioning that recycles energy from exhaust air and elevators that re-use energy elsewhere in the building.
The building will have a ‘green’ roof to boost bio-diversity and is hoped to receive an ‘excellent’ Building Research Establishment Environmental Assessment Method (BREEAM) rating.