Deutsche Finance International (DFI) and Yoo Capital have agreed a £875m loan with Goldman Sachs’ merchant banking division to part finance the development of Olympia London.
The loan will provide the last funding for the £1.3bn project, which has already received equity backing from two German institutional investors, Bayerische Versorgungskammer (BVK) and Versicherungskammer Bayern Group (VKB)
The Olympia project is set to create a new cultural hub in west London; the masterplan comprises the full redevelopment of the 14-acre site, and the addition of 1.3m sq ft of commercial space.
The development will see Olympia transformed into a leisure and entertainment destination and plans include a four-screen arthouse cinema, a 1,400 seat performing arts theatre, a 4,100-capacity music venue, a restaurant, shops, two hotels and 2.5 acres of public space.
“This is a boost for London and a clear indication of investor confidence in this transformative project to regenerate an iconic landmark,” said John Hitchcox, chairman of Yoo Capital.
Gavin Neilan, co-founder and co-managing director at DFI, added: “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.”
Chris Semones, managing director at Goldman Sachs’ merchant banking division, 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.”