Mayer Brown advises Crosstree Real Estate Partners on joint venture and £185 million financing to develop a designer outlet village at The O2
22 January 2016
London - Mayer Brown has advised Crosstree Real Estate Partners on the formation of a 50/50 joint venture with Anschutz Entertainment Group (AEG) to develop a new designer outlet retail scheme at The O2, the landmark building on London’s Greenwich Peninsula. The firm has also advised the AEG/Crosstree joint venture on a £185 million financing by Lloyds Banking Group to partly finance the scheme.
The joint venture will operate and manage 370,000 sq ft of existing leisure and retail real estate, which includes 24 restaurants and an 11 screen cinema, located around the concert arena at The O2. The proceeds of the financing will be used by the AEG/Crosstree joint venture to develop a new 204,000 sq ft designer outlet targeting premium and high street retailers in what will be the most significant development works at The O2 since it was converted into the world’s most successful concert venue in 2007. The facility made available to the joint venture is fully underwritten by Lloyds Banking Group and represents the largest commercial property development loan made by the bank since 2008.
Jeremy Clay, global head of Real Estate at Mayer Brown, said: “The O2 is a hugely successful venue and this new development promises to build on that success by transforming the London landmark into a significant retail destination. This is an exciting opportunity for Crosstree and AEG and we are delighted to assist them with this deal.”
The Mayer Brown team advising on the joint venture was led by Jeremy Clay, and the financing by Real Estate Finance partner Andrew Hepner. The wider team included Real Estate partner Anita Jones, senior associate Rose Meller and Real Estate Finance associates Elizabeth Butler and Annabel Ersser; Corporate & Securities partners Richard Page and Connor Cahalane and senior associate Jonathan Musker; Planning & Environment partner Michael Hutchinson; and Tax Transaction & Consulting senior associate Simon Slade and associate Kitty Swanson.
Mayer Brown has also advised Crosstree on the sale of its interests in 207 and 211 Old Street, also known as The Bower, to Helical Bar plc, and the purchase by Crosstree of Helical's interests in retail units at the same site. The properties were held in a joint venture between Crosstree and Helical, which acquired the site in 2012.