Cain Hoy and development partner Sager Group have secured a £190m loan facility to finance the development of Islington Square, their 4.5 acre mixed-use regeneration scheme in Islington, N1.
The loan has been provided by Lloyds Bank Commercial Banking and Investec Structured Property Finance, and will be used to bring the £400m scheme fronting Upper Street to fruition.
Investec SPF provided the initial refinance loan that will roll into the wider development facility, provided together with Lloyds, when building work begins.
Lloyds Bank acted as agent, security trustee, hedge provider and loan co-ordinator and will provide hedging facilities as part of the transaction.
Islington Square will be a 500,000 sq ft mixed-use shopping, leisure and residential redevelopment of the former North London Mail Centre. It is expected to complete in 2017.
Giris Rabinovitch, chief executive officer of Sager Group, said: “This significant development financing from Lloyds Bank and Investec highlights their confidence in the area, the site and our plans for it.’’
Letting agents for retail and leisure are Cushman & Wakefield, Orme Retail and Shelly Sandzer. Knight Frank, Savills and Beauchamp Estates are instructed on residential.
