News

Marano is first with spec cash

News

Estates Gazette

25 October 1997

By Marc Lopatin

Speculative bank finance has reappeared in the City with Peter Marano’s £122m redevelopment of 9 Appold Street, EC2 the years’ largest funding deal.

Hypobank and United Bank of Kuwait have agreed to provide 80% of the < cost of a major rebuild of the existing property just west of Broadgate.

Dubbed Broadgate West, the site is owned freehold by Morgan Stanley Real Estate Fund and developers Peter Marano and Micheal Dennis.

Marano, who runs Gemini Commercial Investments, is propsing 21,831 sq.m. (235,000 sq.ft)of grade A office space, making it the largest speculative funding this year and the first since the last boom to be specualtively funded by banks.

Twoother large City schemes have been funded speculatively, but by a german open-ended funds. In August, DESPA funded Helical Bar’s £88m redevelopment of 100 Wood Street, EC2.

And last year, DIFA speculatively financed Markborough’s 21,367 sq.m. (230,000 sq.ft.) Thames Court development. DIFA recently saw the entire building let Rabbobank and JP Morgan in excess of £376 per sq.m. (£35 per sq.ft.)

Marano had tried to line up a prelet at Broadgate West with solicitor Simmons & Simmons in May bu tnegotiations collapsed when the law firm opted to relocate to Wates’ redevlopment of Britannic Tower, EC2.

Sources said this proved to be a blessing for Marano and his backers, who are likely to derive a greater return from a seculative development, Marano said he was hoping to let the new scheme at about £430 sq.m. (£40 per sq.ft.) giving an end investment of about £122m.DESPA is similarly said to have ejected Helical Bar’s prelet tenant, Dibb Lupton Allsop, to gamble on higher returns from going ahead speculatively.

Demolition work at Broadgate West will start in the next two weeks in advance of anticipated planning consent from Hackney council on November 12.

More than half the building will be torn down and the rest stripped to the frame. It is claimed that the new offices, with floor plates of up to 2,694 sq.m. (29,000 sq.ft.) can be delivered within 14 months.

DTZ Debenham Thorpe and Jones Lang Wootton are the letting agents.

By Marc Lopatin Speculative bank finance has reappeared in the City with Peter Marano’s £122m redevelopment of 9 Appold Street, EC2 the years’ largest funding deal. Hypobank and United Bank of Kuwait have agreed to provide 80% of the < cost of a major rebuild of the existing property just west of Broadgate. Dubbed Broadgate West, the site is owned freehold by Morgan Stanley Real Estate Fund and developers Peter Marano and Micheal Dennis. Marano, who runs Gemini Commercial Investments, is propsing 21,831 sq.m. (235,000 sq.ft)of grade A office space, making it the largest speculative funding this year and the first since the last boom to be specualtively funded by banks. Twoother large City schemes have been funded speculatively, but by a german open-ended funds. In August, DESPA funded Helical Bar’s £88m redevelopment of 100 Wood Street, EC2. And last year, DIFA speculatively financed Markborough’s 21,367 sq.m. (230,000 sq.ft.) Thames Court development. DIFA recently saw the entire building let Rabbobank and JP Morgan in excess of £376 per sq.m. (£35 per sq.ft.) Marano had tried to line up a prelet at Broadgate West with solicitor Simmons & Simmons in May bu tnegotiations collapsed when the law firm opted to relocate to Wates’ redevlopment of Britannic Tower, EC2. Sources said this proved to be a blessing for Marano and his backers, who are likely to derive a greater return from a seculative development, Marano said he was hoping to let the new scheme at about £430 sq.m. (£40 per sq.ft.) giving an end investment of about £122m.DESPA is similarly said to have ejected Helical Bar’s prelet tenant, Dibb Lupton Allsop, to gamble on higher returns from going ahead speculatively. Demolition work at Broadgate West will start in the next two weeks in advance of anticipated planning consent from Hackney council on November 12. More than half the building will be torn down and the rest stripped to the frame. It is claimed that the new offices, with floor plates of up to 2,694 sq.m. (29,000 sq.ft.) can be delivered within 14 months. DTZ Debenham Thorpe and Jones Lang Wootton are the letting agents.