London Bridge Tower Secures Key Equity

London Bridge Tower Secures Key Equity

Finishing one of the final chapters of the London Bridge Tower development saga, the Sellar Property Group and their partners CLS and the Halabi Family Trust have secured equity for the project.

Stepping up to give financing of £196 million in the CLS / Sellar / Halabi joint venture, Teighmore, are the Nationwide Building Society and Iceland's largest bank, Kaupthing Singer & Friedlander who specialise in investment banking services.

This infusion of cash fills the financing gap that the tower and its shorter neighbour, combined together into the London Bridge Quarter. This does mean there will be a potential future shortfall in money as the funding does not cover the entire costs of construction but it will allow the partnership to start demolition and get things underway into 2008 giving them plenty of time to raise enough money on the markets to pay for the completion of the massive project.

Although the tower is a little over half let with anchor tenants of Transport for London and Shangra La Hotels, there is still a minority of vacant space within including retail units and residential apartments whilst Neighbouring New London Bridge House does also has to be occupied and is included in this.

One of the problems the developers have had is getting the site clear so they can demolish the current building on it, Southwark Towers. Currently occupied by financial services firm PWC, Teighmore, have had some problems getting their tenant to budge. Part of the financing deal offers a solution to this and will go to pay PWC to vacate the site so work can begin meaning they should be out within the next 12 months.

The refusal of PWC to move has already caused delays in the original works programme, Teighmore first anticipated taking possession of the site in the last half of 2006 but this and the enabling works that should have begun at the beginning of the year have yet to kick off.

The 310 metre tall 66 floor tower designed by Renzo Piano will be built next to London Bridge Station in the Borough of Southwark, just a stones throw south of tower bridge. Once built it will be by far the tallest building in the U.K, the current title holder, One Canada Square is a middling 235 metres high.

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