DownloadLloyds Bank Commercial Banking has extended a £185m debt facility partly to finance the development a new designer outlet retail scheme at The O2 in London for joint venture partners Crosstree Real Estate Partners and Anschutz Entertainment Group (AEG).
Crosstree and AEG plan to develop a new 204,000 sq ft designer outlet targeting premium and high street retailers, complementary to the existing 370,000 sq ft leisure and retail offering.
Lloyds Bank’s package is split between a development facility for the designer outlet and a refinancing of the existing retail and leisure component.
The bank intends to syndicate a proportion of the £185m whole loan through its debt capital markets distribution platform whilst also retaining a large interest.
The development will be the most significant at The O2 since the former Millennium Dome was converted into the world’s most successful concert venue in 2007.
The existing property is fully let and benefits from strong cash flow with a c.18 year weighted average lease length underpinned by 24 national restaurant brands and an 11 screen cinema.
The JV’s intention is to appoint a contractor in the first quarter of 2016 with the scheme expected to complete in late 2017.
Sarah McGuigan, Chief Legal