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London's Canary Wharf taps Apollo for $777 mln refinancing deal

Published 2024-12-10, 08:54 a/m
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Investing.com -- Canary Wharf Group has finalized a £610 million ($777 million) loan agreement with clients and funds managed by Apollo Global Management (NYSE:APO), ensuring the repayment of bonds set to mature in 2025 and 2026. 

The loan is secured against the majority of CWG’s 1.2 million square feet of retail space, which boasts a high occupancy rate of 97%. 

This move is part of a broader refinancing effort by the group, which has successfully restructured over £2 billion in loans in the past year. 

This restructuring not only shows the strength of CWG’s assets but also positions the company to operate without major refinancing pressures until 2028, with no major office refinancing needs until late 2029.

“We have achieved a significant amount of financing over the last 12 months and this latest deal with Apollo is testament to the strength of the proposition and our performance at Canary Wharf,” said Becky Worthington, Chief Finance Officer at Canary Wharf Group.

Among the recent refinancing milestones, CWG secured £564 million against 1-5 Bank Street, extending the loan’s maturity to November 2029. 

The property is home to Société Générale (EPA:SOGN) and the European Bank of Reconstruction and Development. 

Additionally, £132 million was secured for 15 & 20 Water Street, part of the Wood Wharf development. 

The area, which includes cultural and leisure facilities alongside residential and retail spaces, has become a vibrant extension of Canary Wharf.

Another deal involved £341 million for 25 Churchill Place, with the loan extended until July 2030. 

This property houses EY and the European Medicines Agency, with leases extending to 2040 and 2039, respectively. 

CWG also secured an £80 million loan for the construction of two serviced apartment buildings at 3 & 15 West Lane, introducing new accommodation options to the area. 

An additional £76 million was raised for One Churchill Place, alongside the extension of an existing £390 million loan to 2039, in alignment with Barclays’ long-term commitment to its UK headquarters.

With more than 320 shops, over 80 dining establishments, and 16.5 acres of green and blue spaces, the area continues to evolve. 

Upcoming developments, such as the Vertus Edit aparthotel launching in early 2025, will expand residential and hospitality offerings.

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