German backers of Olympia redevelopment add new £500m investment
The German investors behind the redevelopment of Kensington’s Olympia exhibition centre have committed an additional £500m as the consortium refinances the project.
Deutsche Bank AG will hand a £900m loan to the consortium behind the project, which includes German pension fund Bayerische Versorgungskammer and insurer Versorgungskammer Bayern.
The project is one of London’s biggest regeneration schemes, with the site set to feature a 3,800 capacity music arena – sponsored by British Airways – as well as a theatre, 30 bars, two hotels and 550,000 sq ft of office space.
Deutsche Bank has provided the senior facility in a £1.3bn refinancing and the sponsors have injected additional equity, and a junior loan facility could later be added.
The new loan facility, first reported by Bloomberg, is secured against the mostly completed project and bears a lower interest rate than the construction loan which had been used to fund the development.
Olympia redevelopment to open doors this year
The £1.3bn redevelopment project is nearing completion, with the West London exhibition centre set to open its doors imminently.
The project follows recent major regeneration schemes like King’s Cross, Battersea Power Station and Stratford, and will hope to follow these in boosting the economy and culture of its area.
Olympia was first opened in 1886 and the regeneration has been hit by a slew of pandemic-induced delays and planning objections.
Developers were troubled by complaints around the venue’s late-night licensing and the impact of traffic to nearby residents.
£1m TfL deal to drive Olympia footfall
Yoo Capital and Deutsche Finance International, who are backing the Olympia project, announced on Tuesday they are partnering with Transport for London (TfL) to fund additional overground services to drive footfall to the site.
The five-year deal is worth £1.1m per year and will cover the cost of 16 extra peak-time services per day on the Clapham Junction branch of the Mildmay line.
The British Airways music venue is set to open on 16 June, and the theatre will first welcome visitors next year.
The theatre, also sponsored by the airline, will be London’s largest purpose-built theatre in almost 50 years.
When announcing British Airways’ sponsorship of the new music venue, its operator AEG Presents said: “Olympia is a place that has an incredible musical history which we want to honour whilst creating a venue that is thoroughly modern with world class facilities for artists and fans alike.”