Heron Tower still standing as overseas lenders flock to financing deal
Canada’s tallest skyscraper has attracted new lenders to the UK commercial property market, as its financers reached their syndication target.
ING and Landesbank Baden-Wurttemberg (LBBW) have now completed the syndication of their £400m loan against Heron Tower.
The pair have syndicated over £200m, exceeding their 50 per cent target. It is understood that many of the eight lenders are new to the UK market, and include firms from Taiwan, Korea, Japan, China, and Germany.
Jean-Maurice Elkouby, head of ING’s syndication desk, said: “this is good news not only for us, but for the entire market as it proves that deals can still be done in spite of the result of the referendum.”
The building, sometimes known as 110 Bishopsgate or Salesforce Tower, is owned by a trust comprised of Heron International and the Oman State General Reserve Fund. After a deal to sell the tower to Chinese company Anbang Insurance fell through last year, the owners turned to a refinancing deal with ING and LBBW.
Gerald Ronson, CEO of Heron International, said: “The initial loan was secured on competitive terms pre-Brexit and it is a testament to the building and the London market that the syndication has proceeded so smoothly post-Brexit."
Home to the Duck and Waffle, London’s highest 24/7 restaurant, Heron Tower was completed in 2011 and is technically the tallest building in Canada at 230m.
Excluding its 28m mast the building is only 202m, shorter than the 225m Leadenhall Building. However, if plans for 1 Undershaft go ahead, this will dwarf both towers and become the tallest building in the district at 304.9m
As of January this year, the tower is fully let. The primary tenant is software firm Salesforce.