Cheyne Capital has provided a £121m senior development loan to South Korean real estate manager IGIS Asset Management to finance the refurbishment of the 230,000 sq ft, Grade II* listed 1 Poultry office building at Bank Junction in the City of London.
The plans for the modernisation and decarbonisation of the listed landmark, which will ensure it remains commercially relevant while respecting its architectural significance, were approved in March this year. IGIS is targeting an 80% reduction in operational energy use intensity, alongside EPC A and BREEAM Outstanding ratings.
The development team for the project is co-led by Ben Cross and Basil Demeroutis, who are acting as asset and development manager.
Hamish Gordon, director in Cheyne Capital’s real estate group, said: “Against a backdrop of constrained new supply, we continue to have strong conviction in high quality, well-located offices in the City of London. The continued flight to quality is driving occupier demand for modern, sustainable space, creating attractive opportunities for well-positioned refurbishment projects. One Poultry is a strong example of this and we are pleased to support IGIS Asset Management and its delivery team in the refurbishment of this landmark building.”
Basil Demeroutis, managing partner at FORE Partnership, added: “One Poultry is about creating the kind of product we believe the market increasingly demands – distinctive, highly sustainable and built for long-term performance. Working closely with our design and supply chain partners, we are showing that ambitious decarbonisation can sit alongside architectural quality and commercial performance, even in a landmark historic building.”
Ben Cross, managing partner at MORE, said: “Complex projects depend on genuine alignment between the people behind them. Bringing IGIS and Cheyne together behind the ambition for 1 Poultry has been a privilege. Their collective conviction, together with the work of our incredible team, has given us the platform to turn that ambition into delivery.”
JLL advised on the financing transaction.
