The substantial site is in a prime location next to what will be Amazon’s new European headquarters, and sits less than five minutes’ walk from Liverpool Street and Shoreditch High Street stations.
The project, known as The Stage, incorporates the remains of Shakespeare’s 16th century Curtain Theatre, where Romeo and Juliet was first performed. The deal will see Plough Yard Developments Ltd retain the freehold while granting a new 250-year lease to the consortium to develop the 2.3-acre site, which has consent for a £750m GDV mixed-use scheme including a 40-storey residential tower and over 250,000 sq ft of office, retail and leisure accommodation set around over an acre of vibrant public space. The remains of the theatre will also be excavated and preserved as part of the development, providing a new tourist attraction for domestic and international visitors. Working alongside the consortium, Plough Yard Developments Ltd will keep a stake in this internationally important heritage visitor centre.
Investec Structured Property Finance provided a debt and equity funding package for the deal. King & Wood Mallesons acted for the Cain Hoy-led consortium, and Berwin Leighton Paisner acted for Plough Yard Developments Ltd.
Jonathan Goldstein, Cain Hoy’s Head of European Investments, said:
“This is an historic site at the heart of one of Central London’s most vibrant areas. Shoreditch, home to the capital’s internationally famous ‘Tech City’, is an exciting residential, commercial and investment destination. We are pleased to be working on this deal with our partners Galliard Homes – with whom we already have a joint venture arrangement platform – and MG Properties. Alongside other investments such as Islington Square and Millharbour, this deal further highlights our ability to act decisively to deploy significant capital.”
Drew McCourt, President of MG Properties, said:
“Shoreditch is among Central London’s most attractive locations for real estate investment and mixed-use development and MG Properties is very pleased to join Cain Hoy and Galliard Homes on this exciting project. Blending world-class commerce and residences, and a clear appreciation for its underlying rich history, The Stage will represent the very best aspects of this extraordinary neighbourhood.”
Stephen Conway, CEO of the Galliard Group, said:
“We are very excited to be entering into this partnership with the Estate office and to acquire our latest deal with our joint venture platform partners, Cain Hoy. We look forward to delivering what will be a new cultural, residential and commercial centrepiece for London.”
Sarah Bard of The Estate Office, Shoreditch, said:
“Pringle Brandon Perkins and Will’s scheme, designed by John Drew and Therese Bak, celebrates the historical and cultural importance of Shakespeare’s ‘The Curtain’ theatre amidst first class design. We are delighted to be working with Cain Hoy, MG Properties and Galliard to deliver The Stage – a unique place in Shoreditch to live, work, shop and play. This will be a world-renowned destination in the London Borough of Hackney – home to the very first example of Elizabethan theatre.”
Simon Brooks at Investec Structured Property Finance, said:
“We are delighted to be supporting Cain Hoy Enterprises, MG Properties and Galliard Homes with this development. The Stage is one of the most exciting projects in London providing a strong balance between different use classes and strategically positioned in a vibrant area of the capital. The facility agreed demonstrates our continued commitment to supporting exceptional clients to deliver exceptional projects.”
The Consortium was advised by Allsop and CBRE. Allsop is advising on the offices and CBRE has been appointed in respect of the sale of the apartments. Alan Selby, Executive Director at CBRE said: “The Stage will be one of the most exciting residential developments in London, benefitting from a prime Shoreditch address, yet adjacent to the City of London.” Howard Kauffman of Allsop said: “The Stage will provide the next generation of office accommodation in the heart of Shoreditch, a market which is massively under supplied.”