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$713M Loan in Hand for Office-Tower Build

LONDON-Two major European banks agree to provide construction financing for a 41-story office tower that will anchor Heron Plaza, a US $1.92-billion development.

By Brian K. Miller | Updated on March 06, 2007

LONDON-Heron International and its equity partners have landed a US $713-million construction loan for a 41-story, 462,000-sf office building in the heart of London. The tower will anchor Heron Plaza, a US $1.92-billion development that will get under way at 110 Bishopsgate later this year and open to the public a couple of years later.

Heron International says the total development cost for the tower itself is about US $963.5 million. The tower construction loan is being provided by Eurohypo AG, and Landesbank Hessen-Thringen (known as Helaba). A representative of Heron did not respond to requests for additional detail regarding the financing or how the remainder of the development would be financed.

Heron is putting up one third of the equity required for the development. The remaining two thirds is being provided by Oman State General Reserve Fund and Strategic Real Estate Advisors (known as Stratreal).

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