London Pinnacle tower finance deal finally signed

Aaron Morby 13 years ago
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Building work can finally resume on the 64-storey Pinnacle tower after it stalled due to lack of finance earlier this year.

The deal to get the Pinnacle project back on track includes a £500m debt facility from a group of lenders led by HSBC, plus the injection of new equity from Saudi Arabia-based investor consortium Sedco.

Khalid Affara, managing director at development manager Arab Investments, today said: “HSBC has been appointed by Pinnacle No 1 as sole bookrunner to arrange a £500m club facility to fund the development of the Pinnacle.”

The financing deal should allow main contractor Brookfield to resume work on the building, although there are rumours that the package carries a proviso to sign more pre-lets.

The Bishopsgate tower will be the tallest in the City of London. The project stalled just as the first Byrne Brothers poured concrete core rose out of the basement level earlier this year.

Cranes stood idle for much of this year on the city site waiting for a full funding deal to be thrashed out.

During this time there have been several occasions when the job was said to be ready to restart but the site remained closed.

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