Allied London has turned to long-time finance partner PGIM Real Estate to fund its purchase of the London Road Fire Station in Manchester.
PGIM Real Estate, formerly known as Pramerica Real Estate, will extend a whole loan covering around 85%, or £15m, of the £17m purchase price to help acquire the building opposite Manchester Piccadilly station.
The site is expected to have a value of £40m when completed.
PGIM RE is considering adding to the debt up to a total of 50% of the value, depending on demand for prelets.
Last March, PGIM Real Estate worked with Allied London on a £120m debt package alongside Lloyds Banking Group and the North West Evergreen Fund for its flagship 343,000 sq ft 1 Spinningfields project.
The London Road Fire Station has been vacant since 1986 after Brittania Hotels failed to bring to completion plans to develop a 227-bedroom hotel.
Allied London has applied for temporary planning for leisure use on the site, anticipating its own mixed-use scheme.
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