Investec, the asset management group, has announced it will offer a £43 million loan to the Labtech Group, a real estate development and investment business, to fund the development of a major 140,000 square foot (sq ft) mixed-use scheme in King’s Cross. Owned by Israeli billionaire Teddy Sagi, the business has also arranged a £29 million loan with Bank HaPoalim, Israel’s largest bank.
“We’ve been working hard to build strategic partnerships with like-minded lenders so that we can support our clients beyond the scope of our own balance sheet,” said Simon Brooks, co-head of origination at Investec.
“We are glad that with the relationships we have built with other lenders such as Bank HaPoalim and Harel, we have been able to build on our capability and support our clients,” he continued.
The development project is located on Camley Street, next to King’s Cross station, where Labtech is planning to develop 121 one, two and three bedroom luxury apartments and 29,000 sq ft of co-working space. The apartment will be let and operated by Sagi’s private rented sector (PRS) and co-working platforms.
“This is a very exciting project for The LabTech Group, creating another valuable ecosystem for co-working, living and events,” said Chen Moravsky, president and CEO of The LabTech Group. “We are delighted to be working with Investec on this project and look forward to a long and beneficial relationship.”
Work has already started on the scheme and it is expected to approach completion in 2020.
Investec raised last month £195 million for the Cain International-led consortium the Stage Shoreditch to fund the development of a 550,000 sq ft mixed use scheme in Shoreditch.