BELFAST’S newest commercial property development Merchant Square was handed over to PwC at the end of June - and developer Oakland Holdings has just signed off on a major refinancing of the building.
Construction started on Merchant Square in 2018, and the 10-floor building, which provides 230,000 sq ft of Grade A office space was funded through a combination of Oakland Holding’s own investment, and loans from Fairfield Real Estate and the Northern Ireland Investment Fund.
The Northern Ireland Investment fund was established in 2017 and is managed by CBRE UK. Merchant Square was its first investment.
Will Church, senior director at CBRE Capital Advisers, said: “We are delighted by the early repayment of the Fund’s first loan. Acceleration of this type of development in a market short of funding options is exactly what the Northern Ireland Investment Fund was created for.
“The ability for occupiers to see sites under development before committing to taking space is critical in completing the funding circle.
“The location of 3,000 jobs in Belfast by PwC and the early refinance by Danske Bank have been made possible by Oakland’s development skills coupled with NIIF’s funding provision.”
PwC will centralise its Northern Ireland operation in Merchant Square, which will house 3,000 employees when fully occupied, and it will be one of the city’s most innovative digital spaces.
As well as being the firm’s global hub for blockchain, PwC will also relocate the Google Innovation Lab which currently sits within its existing base in Waterfront Plaza.
The refinancing of the Merchant Square development was overseen by Radius Corporate Finance, whose director Brian Loughan said: “ After we managed a six-month long competitive process involving over 60 possible lenders, early in 2020 Danske Bank was selected to be funder for the refinance.
“We worked with Danske to deliver a competitive and well-structured proposition which has provided for the redemption of existing funders.
“This refinance helps bookend a very successful project by Oakland Holdings, and is indicative of the calibre of projects that Oakland Holdings will seek to continue with in the years ahead.”
Legal advisers for Oakland Group were A&L Goodbody, while Danske Bank was advised by Millar McCall Wylie.
