Goldman Sachs to provide £875m loan for Olympia London scheme in UK
March 05, 2020 – Goldman Sachs Merchant Banking Division has agreed to provide £875m (€1bn) development loan for the Olympia London Exhibition Centre regeneration project in the UK.
The €1.5bn (£1.3bn) project, which will transform Olympia London into a leisure and entertainment destination, is being developed by YOO Capital and Deutsche Finance International (DFI).
Designed by Heatherwick Studio and SPPARC architects, the masterplan will see the full redevelopment of the 14-acre site into a destination with hotels and restaurants, performance venues and modern office space.
Yoo Capital chairman John Hitchcox said: “This is a boost for London and a clear indication of investor confidence in this transformative project to regenerate an iconic landmark.”
DFI co-founder and co-managing partner Gavin Neilan said: “To have secured a commitment of this level from Goldman Sachs is a compelling endorsement of the Olympia project, and indeed of the long term outlook for London as a global tourist and business destination.”
Subject to signing main construction contract, initial construction work on the Olympia project is scheduled to commence shortly.
Goldman Sachs Merchant Banking Division managing director Chris Semones said: “This transaction continues our strategy for Real Estate Credit Partners III to originate large loans to hold against high-quality projects with excellent sponsorship.”
The project will feature a four-screen arthouse cinema, a 1,400-seat performing arts theatre, a 4,100-capacity music venue, shops, cafés, two hotels, and 2.5 acres of new public space, including pedestrianised squares and a sky garden.
Additional features will include 670,000ft² of creative office space including new co-working space; and upgrades to the spaces to turn Olympia London into one of the top exhibition and event centres.
The project is expected to create more than 3,000 jobs during the construction phase as well as 5,400 new jobs for the borough upon completion. First tenants at the project are expected to move in by 2023.