Wednesday 11 December 2019

Nama takes control of London property at centre of €200m development plan

Treasury buildings
Treasury buildings

NAMA has taken control of a property in the City of London earmarked for a £200m development.

The state bad bank appointed receivers to 80 Fenchurch Street in the heart of The City.

A spokesman for the National Asset Management Agency confirmed that National Asset Loan Management Ltd, a subsidiary of Nama, has appointed Jon Gershinson and Peter Mayo of Allsop as Joint Fixed Charge Receivers to the property.

The building on the site at present is believed to have been vacant for some time and the site has planning permission for a 250,000 sq ft mixed use development of offices and retail.

Planning has been given for a mix grade A offices, retail and ancillary accommodation arranged over two basements, ground and 14 upper floor levels. Nama is expected to part-fund the completion of the development.

The site was being developed by Irish firm Shieldpoint. Earlier this month, Shieldpoint hired CBRE and Savills to find a buyer for the property.

A Shieldpoint spokesman told CoStar News that the company had invited Nama to appoint a receiver.

"Given the financial commitments required to solve the various issues would ultimately come from Nama, we felt it would be easier for them to manage the process.

"We expect the site sale to proceed now and hopefully the process will complete rapidly," he said.

The property is known to have been on the market for some time.

In February, Orion Capital Managers and Quadrant Estates, who on Friday completed a deal to buy the Cineworld complex in Dublin city centre, went sale agreed on the development; but that deal fell through after five months of negotiations.

The site occupies a prominent corner position on the south side of Fenchurch Street, close to its junction with Leadenhall Street, just east of Lloyds of London.

Fenchurch Street and Leadenhall Street are key arterial routes running east-west through the eastern sector of the City of London, linking Aldgate to the east to Gracechurch Street and Bishopsgate in the west.

The site is bounded by Fenchurch Street to the north, Northumberland Alley to the west, Carlisle Avenue to the south and 90 Fenchurch Street to the east.

The major international tourist attractions of St Paul's Cathedral, the Tower of London and Tower Bridge are all within easy walking distance.

The immediate vicinity is popular with major international insurance occupiers, along with professional and financial companies including Lloyds of London, Swiss Re, Willis Group, Societe Generale, UBS and Accenture.

The city has been a hotbed of development in recent years, as planning laws were loosened by City fathers to compete with high-rise developments in Canary Wharf in the docklands.

Two city skyscrapers, 20 Fenchurch Street – better known as the "Walkie Talkie" and the Leadenhall Building – known as the "Cheese Grater"– are already heading to completion.

AIB had originally provided the loans for the 80 Fenchurch Street development.

Sunday Indo Business

Also in Business