Allied London seals funding for Spinningfields

ALLIED London has announced a triple funding deal worth more than £100m for the new tower development at No 1 Spinningfields in Manchester.

The 300,000sq ft scheme been hailed by Allied London as a show of confidence and its vision to complete the final building in the “world class Spinningfields estate”.

The North West Evergreen Fund and Pramerica Real Estate Capital IV have collectively formed a funding consortium in which the senior tranche is to be provided by Lloyds Bank.

It is the largest debt development funding transaction to completed for a North West project since 3 Hardman Street – also a Spinningfields development.

No 1 Spinningfields at 20 storeys will be the tallest commercial building in Manchester constructed for more than 50 years and the highest outside London.

Chief executive of Allied London Michael Ingall said: “This funding package is all about confidence in Allied London, Spinningfields and Manchester.

“No.1 Spinningfields is going to be one of the best commercial buildings in the UK regions, offering not just world class work space but dynamic communal spaces including a roof top restaurant, terrace gardens, entertainment spaces and a mezzanine business lounge.

“All of these features will help to shape the way businesses work and how they develop their staff.

“The corporate venue on the seventh floor will also be a first, a very simple box designed where events can take place and where companies can take over the space for an hour, a day or a week, to help shape their business.”

Lloyd’s Bank developers team relationship director Jonathan Monnickendam said:  “We are delighted to be working with Allied London, a proven developer, in funding the creation of one of Manchester’s highest quality office buildings.

“We’re particularly pleased to be backing this large regional development which will drive jobs and growth in the local economy.”

Director of capital advisers CBRE to the North West Evergreen Fund Andrew Antoniades 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.”
 
The North West Evergreen Fund provided £12m of junior debt funding to complete the capital stack between the senior bank debt and private capital funding.