Deutsche Finance International and Yoo Capital have confirmed that they have agreed an £875m development loan facility with Goldman Sachs’ merchant banking division for the £1.3bn redevelopment of Olympia London.
The loan will part-finance the transformation of the 14-acre site in West Kensington.
Deutsche Finance International and Yoo Capital had already secured equity backing from German institutional investors Bayerische Versorgungskammer and Versicherungskammer Bayern Group.
Designed by Heatherwick Studio and SPPARC architects, the scheme will create 1.3m sq ft of commercial space, a four-screen arthouse cinema, a 1,400-seat performing arts theatre and a 4,100-capacity music venue, as well as revamp the existing exhibition halls at the 134-year-old centre.
In addition, a “jazz club style” restaurant and venue, shops, cafés, two hotels and 2.5 acres of public space, including pedestrianised squares and a sky garden, will be delivered.
John Hitchcox, chairman of Yoo Capital, said: “This is a boost for London and a clear indication of investor confidence in this transformative project to regenerate an iconic landmark.
“We’re moving into a pivotal year for the redevelopment, and with the finances of the exhibition business, investors as well as local community stakeholders now safeguarded, we can look forward to delivering a destination that showcases London at its very best, with culture and creativity right at its core.”
Gavin Neilan, co-founder and co-managing partner at DFI, added: “To have secured a commitment of this level from Goldman Sachs is a compelling endorsement of the Olympia project, and indeed of the long-term outlook for London as a global tourist and business destination.
“We are very grateful for the ongoing support of all our funding partners and, with the development now fully funded, we have a solid foundation to move forward with our plans to transform this iconic location and unlock Olympia’s enormous potential.”
Chris Semones, managing director of Goldman Sachs’ merchant banking division, said: “The history, heritage and location of this development, and the clear potential it holds, present a compelling investment case.
“This transaction continues our strategy for Real Estate Credit Partners III to originate large loans to hold against high-quality projects with excellent sponsorship.”
READ MORE: Yoo’s Hitchcox on Olympia, Vegas and placemaking
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