Heron Tower owners secure £400m refinancing deal

Kasmira Jefford
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Views of High Rise Buildings in Central London
Heron Tower was completed in 2011 (Source: Getty)

The owners of the Heron Tower in the City have agreed a £400m refinancing deal with ING and German bank Landesbank Baden-Württemberg (LBBW).

The two banks have jointly underwritten the five-year senior term loan in a deal believed to value the tower at around £720m.

Law firm Baker & McKenzie advised the banks on the deal while Olswang acted for the owners, which comprise of Gerald Ronson’s Heron International, State General Reserve Fund (SGRF), the Oman sovereign wealth fund and Saudi Arabia’s Prince Abdul Aziz bin Fahd.

The skyscraper is officially known as 110 Bishopsgate after the City of London Corporation rejected a request to formally rename it after one of its major occupiers, Salesforce. Although the US software giant did keep the right to informally call it the Salesforce Tower after a drawn-out battle.

It came close to being sold last summer to Anbang Insurance but the Chinese firm then pulled out due to fears over slowing growth in its home market.

The tower became fully let at the end of the year after letting more floors to Salesforce. Although floors 34 and 35 will soon be up for rent again after Dan Wagner's Powa Technologies collapsed into administration earlier this year.