Investor and lender BGO is considering financing Hines’ £1 billion redevelopment of 18 Blackfriars Road with a circa £500 million loan, CoStar News understands.
Hines and Lipton Rogers recently gained planning consent for the redevelopment of the former Sainsbury’s site in Southwark. Hines alongside the National Pension Service of Korea bought 18-20 Blackfriars Road for £208.5 million in 2021 from a 50-50 joint venture between Malaysia's Black Pearl IGB Corporation and Tower Ray. The duo believes the site has a gross development value of £1 billion.
The scheme will involve 820,000 square feet of office space and two residential buildings providing more than 400 homes, including 40%-on-site affordable homes.
BGO has not provided a loan this big before. It typically finances loans ranging from €5 million to €200 million. They can be senior, junior, whole loans and mezzanine loans. BGO recently raised €1.38 billion from 40 institutional investors for its third Europe Secured Lending Fund.
At the end of 2023, BGO raised £1.43 billion for its UK Secured Lending strategy. In January, it provided a £104 million construction loan to Breakthrough Properties for the construction of a life-science building in Cambridge called Vitrum by Breakthrough.