Allied London has been awarded a £16.5m senior loan from the North West Evergreen Fund to finance enabling work on its St John’s regeneration project in Manchester.
The loan will finance the refurbishment of the Bonded Warehouse, as well as the pre-development and infrastructure works for the wider St John’s development, including Manchester Goods Yard, St. John’s Place, One Granada Studios and the South Village.
St John’s will create a new neighbourhood in Manchester on the old Granada Studios site. The completed development will provide a mixture of use types ranging across office, hotel, leisure, residential and flexible workspace and event space, as well as a variety of independent shops, cafés and restaurants.
The North West Evergreen Fund is managed by CBRE’s debt investment advisory team and provides debt funding for commercial property and regeneration projects in the North West.
This loan is the Evergreen’s fifteenth since inception as the fund continues to support development in the region. It has provided £200m of finance, recycling and reinvesting its capital and supporting developments with a combined value of over £1bn.
The fund was recently re-capitalised to over £100m and continues to support North-West developments that require finance.
Mike Ingall, chief executive of Allied London, said: “St. John’s is a major development project. Our current intention is to develop the entire project in one extended phase which will involve significant development funding. Whilst we put all the pieces into place, we have secured funding from Evergreen for early infrastructure and enabling works together with the development of the Bonded Warehouse, which will be the initial anchor building for Enterprise City, due to open in early 2018. This is our third transaction with Evergreen and we are delighted to have established such a solid relationship”.
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