Canary Wharf Group (‘CWG’) completes a £610 million loan with clients and funds managed by Apollo (NYSE: APO). The proceeds will be used to repay CWG’s bonds due in April 2025 and April 2026.
The whole loan is secured in tranches against the majority of CWG’s 1.2. million square feet retail portfolio which is currently 97% occupied.
In the last 12 months CWG successfully completed more than £2 billion of refinancings, demonstrating the quality of CWG’s asset base and opportunities for growth, as well as strong support from lenders. Through all of these financings, CWG has repositioned its balance sheet such that there are no material refinancings until 2028 and no significant office refinancing requirements until late 2029. The refinancings include:
- £564 million secured on 1-5 Bank Street, home to Société Générale and the European Bank of Reconstruction and Development. Loan extended until November 2029.
- £132 million secured on 15 & 20 Water Street – part of Wood Wharf, a thriving cultural, leisure, retail and residential mixed-used environment expanding to the east of Canary Wharf which includes Broadwick Live, The CUBE, TRIBE Hotel, Dishoom, Patty & Bun, Third Space as well as the London Innovation Centre developed with Kadans Science Partner.
- £341 million secured on 25 Churchill Place, extending the loan until July 2030 on this high-quality office building let to EY and European Medicines Agency until 2040 and 2039 respectively.
- A loan of £80 million for the construction of two new serviced apartment buildings offering short and medium stays in the Wharf for the first time at 3 & 15 West Lane, an exciting evolution of the residential and hospitality offering at Canary Wharf encompassing everything from a one-night stay in the TRIBE Hotel to build-to-rent housing and aparthotel with Vertus, as CWG continues to see success across its residential portfolio.
- £76 million of additional loan secured for One Churchill Place, together with extending the existing £390 million [1]loan to 2039 alongside Barclays lease extension to that date, with Barclays investing in its UK headquarters for the long term.
Becky Worthington, Chief Finance Officer for Canary Wharf Group, said:
“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. We are pleased that Apollo could provide a bespoke solution to address both near and medium-term maturities, which speaks to the quality of our portfolio and supports the stability and long-term nature of our capital structure.
“We continue to attract new businesses to the Wharf including health, life sciences, education, VC start-ups and scale-up customers. Several customers have recommitted including Barclays, Morgan Stanley, Citibank and JP Morgan, and earlier this year, Revolut chose Canary Wharf as its global headquarters.
“Canary Wharf is a thriving mixed-use neighbourhood with more than 3,500 people now living here and that figure is set to double over the next two years. Our retail, leisure and hospitality offer continues to grow with an ecosystem that includes childcare and schooling, universities, hotels, gyms and health centres.”
Ben Eppley, Partner and Head of Real Estate Credit, Europe, said: “We are pleased to provide a scaled financing to Canary Wharf Group, secured against one of London’s premier shopping and leisure destinations. Our ability to transact in size and provide a tailored solution we think demonstrates why leading developers and real estate owners like CWG choose to partner with Apollo’s Real Estate Credit business.”
Today Canary Wharf caters for all those who live, work and visit with more than 320 shops, over 80 bars, cafes and restaurants as well as eight grocery stores, pharmacies, health clubs and a school in addition to 16.5 acres of green and blue spaces including the recently launched Eden Dock all within 15 minutes’ walk. The residential community and our accommodation offer continues to grow, with new developments launching next year including the opening of Vertus Edit, an aparthotel, in February 2025.
ENDS
Media Enquiries
Canary Wharf Group
Safina Mirza t: +44 (0)20 7418 2326
Canary Wharf Press Office e: press.office@canarywharf.com
Apollo
Erin Clark
EuropeanMedia@apollo.com / Apollo-EuropeMedia@fgsglobal.com
[1] As of October 2024
Notes to Editors
About Canary Wharf Group:
Canary Wharf Group (CWG) is the developer of the largest urban regeneration project in Europe. CWG develops, manages and currently owns interests in approximately 9 million square feet of mixed-use space and over 1,100 Build to Rent apartments.
CWG is committed to turning sustainability ambition into impactful action. Examples include purchasing 100% electricity from renewable sources since 2012, our partnership with the Eden Project creating a place for nature and people and working to deliver our Science-Based Target.
CWG has created a 24/7 city where people can live, work and thrive on the Canary Wharf estate and enjoy all the benefits: great transport links, access to 16.5 acres of green spaces and waterside living; and a wide range of amenities including an award-winning arts and events programme. Canary Wharf’s retail offering comprises over 80 bars, cafes and restaurants and over 320 shops, including 8 grocery stores, pharmacies and health clubs all within 15 minutes’ walk.
Website: www.canarywharf.com
LinkedIn: @CanaryWharfGroup
Instagram: @canarywharflondon
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2024, Apollo had approximately $733 billion of assets under management. To learn more, please visit www.apollo.com.