Deutsche Pfandbriefbank has provided a £40m facility to refinance Delancey and Dutch pension fund Algemene Pensioen Groep’s (APG) November acquisition of London’s Elephant & Castle Shopping Centre.
The underlying asset is a central London shopping centre with ancillary offices,with a total net lettable area of 326,000 sq ft.
The first phase of the redevelopment plans for Elephant & Castle, co-funded by pbb in December, is nearby on the other side of the Elephant and Castle station and forms part of the wider redevelopment of Elephant and Castle.
Delancey and APG bought the Elephant & Castle Shopping Centre from Key Property Investments, the 50/50 joint venture between St. Modwen and Salhia Real Estate Company, for £80m in cash.
The Delancey / APG joint venture is planning a residential and retail development to “complete and complement the wider Elephant & Castle regeneration strategy”.
This will form a new ‘South Village’ district, and comprises a redevelopment of the Elephant & Castle Shopping Centre and the adjoining Tribeca Square project, which is already owned by Delancey’s principal client fund DV4.
Charles Balch, Head of Real Estate Finance International, UK & CEE at pbb Deutsche Pfandbriefbank said: “We are very pleased to continue our relationship with both Delancey and APG on an asset which we believe will be central to the regeneration of the entire Elephant and Castle area.”
Source: costar.co.uk