The Dubai and London offices of international law firm Norton Rose advised a syndicate of Middle Eastern banks led by ABC International Bank plc, a European subsidiary of Arab Banking Corporation B.S.C, in relation to a senior Shariah compliant facility to Kings Reach Estates Limited, a joint venture between London developer CIT and Jadwa Investment for the redevelopment and refurbishment of the Kings Reach Tower in Southwark, London.
The financing comprised a senior £100 million facility and a £145 million mezzanine tranche provided by Mohammed Al Subeai & Sons Investment Co. Limited a Saudi investment company. ABC International Bank plc acted in its capacity as arranger of the senior financing and investment agent for the senior banks and the mezzanine financiers and coordinated the execution of the financing arrangements.
Built in 1972 and designed by Sir Richard Seifert, Kings Reach Tower and the adjacent podium building have been empty since 2007. The project promoted by CIT, will transform the site into a modern mixed use development comprising residential, office and commercial areas. The scheme will extend the tower by six floors to create 173 high end apartments and the development is part of the wider regeneration of this part of Southwark.
Partner and Head of Islamic finance for the Middle East and Africa, Mohammed Paracha commented: “We were delighted to be involved in this significant project which will reshape the London skyline and contribute to the wider community in the Southwark area. The combined experience of Norton Rose in Islamic finance, real estate finance, property and construction enabled us to deliver a bespoke financing structure meeting the commercial requirements of the project and the various investors backing the scheme.”
The Norton Rose team was led by Dubai based Mohammed Paracha. Senior associate Martin Botik advised on the banking aspects with assistance from Thomas Lindley. London based partners Wasim Khan, Chris Hill and John Challoner advised on property, construction and tax aspects respectively.
King & Spalding advised the mezzanine financiers and Jones Day advised CIT. Isle of Man advice was provided by Appleby acting for the senior banks and Cains acting for CIT and the mezzanine financiers. Appleby and Mourant Ozannes provided Cayman Islands law advice and Al Tamimi Riyadh advised the senior banks in relation to Saudi law aspects.
