LaSalle Residential Finance To Fund £200m City North Development
19 June 2014 - The development, totalling over £200m gross development value, will be the cornerstone of the Finsbury Park area’s major regeneration scheme.
City North Finsbury Park is a joint venture between United House Developments and the owners of Business Design Centre Group.
Financing will come from LaSalle Residential Finance, launched less than a year ago in May 2013, with current commitments totalling £440m. LaSalle Residential Finance (“LRF”) has agreed to provide a debt package totaling £89 million to finance a residential-led mixed use development scheme (“City North”) being developed by City North Finsbury Park, a joint venture between United House Developments and City North Islington Holdings, an associate company of Business Design Centre Group. The facility will partially fund the development of 308 private residential units, 47 affordable units, and 120,000 sq ft of commercial space adjacent to Finsbury Park underground and mainline station, London. Jones Lang LaSalle advised the parties on the financing.
The City North development, soon to be underway, will be the cornerstone of the Finsbury Park area’s major regeneration initiative.The project is the largest regeneration scheme undertaken in Islington since Arsenal’s Emirates Stadium.
Finsbury Park Station is the busiest transport hub outside of Zone 1 and the scheme, which involves complex construction linking the station will act as a gateway for the area. Finsbury Park station offers fast connections to many diverse London destinations (working, entertaining and fashionable destinations such as the City, West End or Hoxton). City North will also offer access to the calm green spaces of Finsbury Park. Due to its central location, multicultural dimension and growing potential, the area is attracting significant investor attention. In addition to residential, retail, and commercial space, City North will also offer cinema, leisure, and other amenities for immediate and local residents. The scheme was designed by award-winning architects Benson and Forsyth and is being implemented by Rolfe Judd.
Michael Zerda, fund manager of LRF and European Director of Debt Investment and Special Situations said: “The excellent work and vision by United House and Business Design Centre Group will bring much needed residential accommodation, retail, and leisure amenities to an under-supplied but growing area."
Jeffrey Adams, Group Chief Executive, United House, said: “City North is set to transform Finsbury Park and will bring new focus and energy to the area. We are delighted that LaSalle Residential Finance has agreed to support this important regeneration scheme.”
Jack Morris, Chairman of City North Islington Holdings and Business Design Centre Group; “We have been working on this project for some years and are absolutely committed to the delivery of a development of the highest quality that will transform Finsbury Park with a new and varied offer, as well as setting the standard for future development in this location. We are delighted to be part of such a vital regeneration project which will bring far-reaching benefits to the area.”
LaSalle Residential Finance I is a £440m venture providing whole loan development finance to UK student housing and London residential developments. It is managed by LaSalle’s Debt Investments and Special Situations division, with over €2.0 billion under management across various investment strategies targeting UK and Western Europe.