Partners Plan $1.15B Mixed at Shoreditch

06/04/15 | |
David Phillips
LONDON — MG Properties, the real estate investment and development arm of McCourt Global, has joined a development consortium to create a new mixed-use development in London’s Shoreditch. 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 consortium is led by Cain Hoy Enterprises, the private investment company, and Galliard Homes, in a partnership with the Bard family’s Plough Yard Developments.

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 $1.15billion (£750m) GDV mixed-use scheme including a 40-story 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 center.

“This is an historic site at the heart of one of Central London’s most vibrant areas,” said Jonathan Goldstein, Cain Hoy’s head of European investments. “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.”

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 Investments.

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 neighborhood.”

MG Properties is the real estate investment and development arm of McCourt Global. Its current projects and interests include a 740,000 square foot mixed-use development project at 360 Tenth Avenue in New York City; a 1.8 million square foot luxury residential development project on Brickell Bay in Miami, a 2.4 million square foot development project on Waller Creek in Austin, Texas, and approximately 260 acres of land in Chavez Ravine in Los Angeles. MG Properties is based in New York City.

Cain Hoy Enterprises is a permanent capital company that owns a diversified portfolio of operating businesses and financial assets. Cain Hoy invests across industries and capital structures with major areas of focus in global real estate and consumer interests such as entertainment, media and retail.

Founded in 1992 and lead by Stephen Conway, Galliard Homes is London’s largest privately owned developer, with a residential and commercial portfolio of £2.4 billion