Goldman Sachs provides £875m loan to Olympia London for regeneration project
Investment bankers Goldman Sachs are to provide an £875m (€1bn) loan to help fund the Olympia London Exhibition Centre regeneration project. The loan was organised by Olympia London owners Deutsche Finance International (GFI) and Yoo Capital who said the loan from the merchant banking division of Goldman Sachs, together with equity backing already in place from German institutional investors Bayerische Versorgungskammer and Versicherungskammer Bayern, meant that the £1.3bn Olympia London project was now fully funded.
Olympia London is situated on 14-acre site in West London and hosts annually 1.6m visitors and over 200 events.
The project, to begin this quarter, will fully redevelop the site and its exhibition halls, with over 120,000sqm of additional commercial space being created. The project is designed by Heatherwick Studio and SPPARC architects.
John Hitchcox, Chairman of Yoo Capital described the new project financing as “a boost for London and a clear indication of investor confidence in this transformative project to regenerate an iconic landmark”.
He added: “We’re moving into a pivotal year for the redevelopment, and with the finances of the exhibition business, investors, as well as local community stakeholders, now safeguarded, we can look forward to delivering a destination that showcases London at its very best, with culture and creativity right at its core.”
Gavin Neilan, Co-Managing Director at DFI, added: “To have secured a commitment of this level from Goldman Sachs is a compelling endorsement of the Olympia project, and indeed of the long term outlook for London as a global tourist and business destination.”
Chris Semones, MD at Goldman Sachs’ merchant banking division, said: “The history, heritage and location of this development, and the clear potential it holds, present a compelling investment case and we are very pleased to be partnering with DFI and Yoo Capital to support what will be one of the most exciting projects in London over the coming years.
Anna Golden, commercial director, Olympia London, concluded: “We are extremely excited that a new phase of investment into Olympia London has now officially begun, inspired by our consultation and research with organisers, exhibitors and visitors.
"As the Capital’s most iconic destination for events and exhibitions, Olympia London is expanding into a creative hub for events, art and entertainment. By 2024, our historic site will offer an array of new spaces for food, drink, live entertainment and hotel accommodation. These, along with 2.5 acres of public areas, will enable Olympia London to comfortably welcome more visitors to the benefit of both event organisers and the local economy.”
Image shows Olympia Grand Hall reimagined. Heatherwick Studio and SPPARC architects.