Heron International secures financing for Heron Tower
Centrepiece of a GBP 1 billion investment and development programme
Heron International, one of Europe’s leading property and investment groups, announces that it has completed the
financing of the Heron Tower Project, an iconic office building in the heart of the City of London.
Two major European banks, Eurohypo AG, Europe’s largest commercial real estate bank, and Landesbank HessenThüringen (known as Helaba) a leading German landesbank, have agreed to jointly provide a GBP 370 million
development finance facility, which will be divided on a 50:50 basis.
Heron has syndicated the equity in the project with the State General Reserve Fund of the Sultanate of Oman and
Strategic Real Estate Advisors (StratREAL®).
Heron Tower’s total development cost will be approximately half of the GBP 1 billion cost of Heron Plaza, a worldclass financial complex, which will create a vibrant new quarter with public spaces and a network of squares and
gardens in the heart of the City. Heron Tower, the centrepiece of Heron Plaza, will be a stunning 41 storey office
tower, providing approximately 462,000 sq ft of net lettable space, including high-quality restaurants and bars with
their own discreet access.
Its unique stainless steel structure was designed by Kohn Pedersen Fox and will provide state of the art internal features
including double deck elevators. The space is tailored to meet the needs of a diverse range of leading City and
international businesses.
Heron Tower will set new standards of environmental performance in the City through its innovative planning,
elevation design and services installation. The offices are grouped around a series of three-storey north lit atria with
the service core located to the south, thus reducing the need for cooling. Together these measures reduce the carbon
emissions produced by the building by over 40%.
Construction on the site will commence in June 2007 and Heron Tower is scheduled to be completed by 2010.
Gerald Ronson, Chief Executive of Heron International, commented:
“I am delighted we have completed the financing for the Heron Tower and that our major international
banking and equity partners share our vision for this stunning new 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, commented:
“Heron Tower will be an excellent new addition to the skyline in the City of London and I look forward
to fur ther developing and strengthening our relationship with Heron Inter national.”
Pierre Rolin, Founder, Chairman and Chief Executive, Strategic Real Estate Advisors, commented:
“We are pleased to be a key partner with Heron and expand our business relationship with them. We share
their vision for the City of London in delivering this very prestigious Heron Tower development.”
Michael Acratopulo, Managing Director-Origination Eurohypo, added:
“Eurohypo has a long track record of working successfully with Heron, and we have great confidence in
its management team and their ability to deliver major development projects. We and our joint arrangers
Helaba are par ticularly excited to be suppor ting the development of Heron Tower.”
Since 1998, StratREAL has been involved in excess of USD 9 billion of transactions for its clients, achieving an
average IRR of 18%. StratREAL currently oversees the management of more than USD 6.2 billion of real estate
assets globally.
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