Native Land announced that it has secured refinancing for its multiple award-winning London development, NEO Bankside, through a debt facility of £49 million from Lloyds Banking. Native Land and Grosvenor, the joint venture developers of NEO Bankside, have obtained the loan for two years.
The new debt facility will enable Native Land to capitalise on sales values at NEO Bankside, responding to the continued popularity of London’s South Bank, led partly by the extension to Tate Modern. The developer is currently selling the scheme’s premium upper floor apartments, and is on track to release its exclusive penthouses later this year.
NEO Bankside is a widely acclaimed £400m world class residential scheme situated immediately adjacent to Tate Modern. The development comprises 217 apartments across four pavilions and officially launched in May 2011. Ninety per cent of apartments have sold since the launch, setting new standards for luxury residential property on the South Bank.
Alasdair Nicholls, Chief Executive of Native Land, said:
“Lloyds Banking’s decision to provide a £49 million debt facility is an endorsement of Native Land and Grosvenor as developers. Our track record of delivering high quality, successful residential schemes during the economic downturn has reinforced our standing with lenders in the current debt market.”
Craig McWilliam, Executive Director, Grosvenor Developments, said:
“The refinancing deal is testament to NEO Bankside as a development. It has already set a new precedent for luxury residential sales in the South Bank area, potentially achieving values as high as £2,400 per square foot. The new debt facility will allow us to maximise the success of the scheme through the phased sales plan in 2013.”
Michael Weir, Director Lloyds Bank Corporate Real Estate, was responsible for the transaction and confirmed:
“Lloyds Bank is delighted to be able to continue to support the NEO Bankside development which remains one of the most exciting and iconic schemes in central London. This transaction reinforces our trusted relationships with both Native Land and Grosvenor – counterparties we are very proud to describe as core business relationships. Prime London development remains one of our priority investment focuses, and this project typifies such appetite.”
Native Land and Grosvenor acquired the NEO Bankside site from Land Securities in July 2006 in a 50:50 joint venture partnership. In 2008, they secured funding from Bank of Scotland Corporate (now Lloyds Banking Group) to develop the scheme.