Canary Wharf Group has begun a search for fresh debt that will be held against its share of 20 Fenchurch Street, EC3 – better known as the Walkie Talkie.
The 688,000 sq ft tower is 50% owned by Land Securities and 50% by a special purpose vehicle managed by CWG. The building is valued at close to £1bn and any leverage put against the stake is likely to be at a conservative level of close to 40%, which means about £200m of new finance is required.
Since the building’s completion in 2014, CWG has syndicated much of its equity in the vehicle to a variety of stakeholders. As a result, a deal to bring in new finance will be complex as the security of any proposed loan will be over the multi-ownership vehicle, rather than the asset itself.
The Walkie Talkie does not have any debt directly secured against it, with Land Securities having funded its share of the development through its own corporate facilities.
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