Arab Investments is in the final throes of securing all the funding it needs to complete the 1m sq ft Pinnacle tower in the City of London, EC2.
The development manager is expected to make a statement in the next two weeks saying it has raised the £1bn required to build the 64-storey skyscraper through a consortium of lenders led by HSBC, and equity raised from the circa 60 investors behind Arab Investments.
Arab Investments has raised £480m through its own investors, leaving a £520m shortfall that will be met by a mixture of bank debt and its own additional equity – a combination that is in the final stages of being agreed.
Arab Investments aims to complete the 945ft tower during 2013, meaning it would be delivered to the market before British Land’s and Oxford Properties’ Cheesegrater, and Land Securities’ and Canary Wharf Group’s Walkie Talkie, both EC3, which are scheduled for completion in 2014.
Arab Investments has long been trying to reach a funding agreement by raising more equity from its own investors, as well as from lead arranger and underwriter HSBC.
In November, Arab Investments secured a further £150m from the Saudi Economic & Development Holding Company to help secure development finance. The cash injection from Sedco, one of the 60 investors in the project, will help reduce the amount of bank debt needed to build the City scheme.
Arab Investments has so far completed six floors of the Pinnacle.
All parties declined to comment.
james.buckley@estatesgazette.com
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