HB Reavis secures financing for its first London development, 33 Central

HB Reavis has secured GBP 127 million financing for its flagship project 33 Central in London. The largest loan facility in HB Reavis’ history has been provided by two German banks, pbb Deutsche Pfandbriefbank and Deutsche Hypothekenbank, new lenders in HB Reavis’ portfolio of credit relationships. The facility has been already utilised and enabled to refinance equity spent by HB Reavis into the project.

With this financing HB Reavis adds two new lenders in its portfolio: pbb Deutsche Pfandbriefbank, a leading European specialist bank for real estate financing and public investment finance and Deutsche Hypothekenbank, one of the most renowned German banks for commercial real-estate financing.

Located in the heart of the City of London between 6 mainline stations and 7 underground lines, 33 Central is one of the best located office buildings in Central London, just a stone’s throw from London Bridge, Monument and Bank, as well as within walking distance of major cultural sites such as the Tower of London and Borough Market and London’s Cycle Superhighway.

HB Reavis acquired the site in late 2013 and commenced construction in mid-2014. In July 2016, the building was sold to Wells Fargo, the third largest bank in the US by assets. The deal was one of the largest single office deals in the City of London market in 2016, and one of the first – and most significant – post-EU referendum commercial property transactions.

The building is designed by award-winning British architecture practice John Robertson Architects, which worked alongside HB Reavis’ in-house design and technical experts to combine stunning design with modern technical solutions.

Upon completion in Summer 2017, 33 Central will provide 21 000 sq m of Grade A office space over 9 floors and a quarter acre roof top garden offering panoramic views of London’s most famous landmarks including the Shard, St. Paul’s, the “Walkie Talkie” office building and the River Thames. The building, targeting a BREEAM Excellent rating for its sustainable design, has been recognized through numerous awards, such as the ‘Best Office Architecture London’ at the UK Property Awards 2015.

Marian Herman, Group CFO at HB Reavis commented: “We are very pleased to open credit relationships with two new lenders, pbb Deutsche Pfandbriefbank and Deutsche Hypothekenbank on the London market, where we are actively increasing the scale of our operations. This financing endorses the quality of 33 Central and demonstrates the trust financial institutions place in HB Reavis as a highly credible partner. The loan facility helped us optimise our capital structure, following significant divestments in 2016 that reduced our leverage levels.”