24 Mar

Linen Court lifts off after Rocket secures £70m funding deal

Investor and developer Rocket Properties has refinanced its Linen Court development in London’s Shoreditch area with a six-year, £70m term loan facility provided by M&G’s Real Estate Finance team.

The funding was arranged by real estate advisory firm Moorhall Capital on behalf of Rocket Properties.

Located just off Old Street’s ‘Silicon Roundabout’, Linen Court is a 150,000 sq ft mixed use scheme that was originally completed by Rocket Properties in 2012. The development comprises a 10-storey office building that is occupied by WeWork, a 251-bed Premier Inn, pub and residential units.

M&G was the incumbent funding partner, and the new deal replaces Rocket’s existing facility with them.

Commenting on the deal, Tom Appleton, co-founder of Rocket Properties, said: “Linen Court was our second development, and it really cemented our position within the Old Street-City Fringe community. We are delighted to continue the funding relationship with M&G and the term facility will allow us to work through the next stage of the building’s lifecycle.”

Rob Jones, principal at Moorhall Capital, commented: “Rocket has transformed much of the skyline around this iconic corner of London and Linen Court is a big part of that. We worked hard to structure a new agreement that extended the facility outside of the rent review cycle.”

Adam Willis, Director within M&G’s Real Estate Finance team, added: “We’re pleased to continue our relationship with Rocket after five years. The development is in an excellent location with a secure income stream from the long lease in place with Premier Inn. The entire whole loan will be invested in and held by funds managed by M&G on behalf of our institutional clients.”