Lincoln MGT, a joint venture between Lincoln Property Company and MGT Investment Management, has agreed to a £107 million construction loan with BentallGreenOak to deliver phase two of the landmark Station Hill mixed-use development in Reading.
The loan will enable the delivery of the second and most prominent phase of the regeneration project, which includes ‘ONE’ Station Hill (a 275,000 sq ft office building), a new public square and a link bridge providing level access from the train station through to the town centre. The development will deliver significant new public realm, made possible by a substantial investment of c.£50 million in the surrounding community infrastructure. ONE Station Hill will be completed in early-2024.
Sir Robert McAlpine has been appointed by Lincoln MGT and preparatory works have already begun for this phase, with the town centre now visible from the train station for the first time in generations following the demolition of the Garrard Street car park, regarded by many as an outdated and unpleasant welcome to Reading.
Construction work on the wider Station Hill development is also already underway on the delivery of 600 BTR private and affordable homes as part of the first phase, with the first homes ready for occupation from the end of 2022. Both phases of Station Hill will therefore be ready for occupancy by 2024.
Once fully delivered, Station Hill will provide up to 1,350 new homes, office accommodation for approximately 9,000 new jobs, lifestyle-led space for retail, cafes and restaurants, and a new pedestrian link and activated public realm between the station and the town centre, establishing Station Hill as a new district and destination for Reading. The delivery of the first two phases of Station Hill marks significant inward investment in Reading, acting as a catalyst for the growth of the surrounding area and contributing to its drive towards city status.
Knight Frank advised Lincoln MGT on the development loan.
Callum Thorneycroft, Managing Director at MGT Investment Management, said:
“We are delighted to be partnering with yet another institutional investor in Bentall GreenOak to deliver the most prominent phase of Station Hill and a new front door to Reading. Station Hill is one of the largest ever development projects seen in the Thames Valley and will deliver a truly sustainable eco-system of blended uses that complement one another, setting a new benchmark for regional regeneration. We would like to take this opportunity to thank all those who have contributed to creating what will be one of the UK’s leading destinations.”
Martin Sheridan, Principal of UK Debt at BentallGreenOak, said:
“We are delighted to be partnering with this 1st class sponsor team to deliver the premier mixed-use property in the Western Corridor. Thematically, the development of high-quality assets with best-in-class sustainable features, on sites near to major transports hubs, is a fundamental feature of our credit investing here at BGO. We continue to expand our geographical investment footprint in the UK and in addition to Reading, over the last 12 months, have financed value-add project across the asset classes in Birmingham, Brighton, Glasgow, Leeds and Manchester – a trend which we see continuing with our strong pipeline into 2022.”
For more information, please contact Freddie Rosen and Jonathan Desmond at Redwood Consulting: Reading@redwoodconsulting.co.uk / 0207 828 5553