One Spitalfields Secures More Than £1bn Financing for Major London Refurbishment

ING Bank and DBS Bank have provided a £1.016 billion development loan for the refurbishment of One Spitalfields in the City of London.

The financing is one of the latest large transactions highlighting the scale of capital still available for major commercial property schemes despite higher borrowing costs.

The One Spitalfields project forms part of the continuing transformation of London's commercial property stock, with developers and investors increasingly focused on upgrading existing buildings rather than relying exclusively on new construction.

Refurbishment can allow older commercial buildings to be repositioned for changing occupier requirements while also addressing energy efficiency and modern workplace expectations.

The transaction comes at a time when commercial property markets are being reshaped by changes in office demand, financing costs and sustainability requirements.

Large schemes capable of attracting institutional finance continue to demonstrate the importance of quality location, asset fundamentals and development strategy.

For the wider UK development market, the deal also highlights how financing remains available for projects that can demonstrate a sufficiently strong investment case, even while the cost of capital remains higher than in the ultra-low-rate period of previous years.