Heron completes financing of £500m Heron Tower

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Developer Heron International has completed the financing of its £500m Heron Tower office building in the City of London.

Heron has agreed a funding deal with the State General Reserve Fund of the Sultanate of Oman and Strategic Real Estate Advisors (StratREAL) to provide the equity for the development.

Two European banks, Eurohypo and Landesbank Hessen-Thüringen, have agreed to jointly provide a £370m development debt finance facility.

The Kohn Pedersen Fox-designed Heron Tower will have a total development cost of around £500m, although the larger Heron Plaza financial complex will cost around £1bn.

The 41 storey Heron Tower is the centrepiece of Heron Plaza, comprising around 462,000 sq ft (42,920 sq m) of office and restaurant space.

Construction on the site will commence in June 2007 and is scheduled to complete by 2010.

Gerald Ronson, chief executive of Heron International, said: ‘Our major international banking and equity partners share our vision for this stunning development in the heart of the City of London.’

Warith Al-Kharusi, director general of the State General Reserve Fund of the Sultanate of Oman, said: ‘Heron Tower will be an excellent new addition to the skyline in the City of London.’

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