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Clifford Chance advises Eurohypo on innovative structure for debt workout of Bevis Marks scheme

23 November 2011

Clifford Chance advises Eurohypo on innovative structure for debt workout of Bevis Marks scheme

Clifford Chance has advised Eurohypo on the development financing facility and associated joint venture to fund the construction of the 170,000sq ft office scheme at  6 Bevis Marks in the City of London. This innovative structure for major debt workout will see Eurohypo retail a profit participation in the developed scheme.

Eurohypo, which originally provided acquisition and development financing to the site's previous owners, Monteverde, will now provide financing to the joint venture formed between Eurohypo and its new partners, AXA Real Estate and MGPA, enabling a key development site in the City of London to come to fruition with practical completion expected in Autumn 2013.

Lead Clifford Chance Partner Franc Peña and Senior Associate Matt Taylor, comment:

"This transaction represents a significant shift in the market. Rather than selling assets and taking a loss, Banks are taking a novel approach towards transactions to get a better end result. It is always a pleasure to work with Eurohypo, who have achieved one of the most innovative structures between banks and investors and who are paving the way for similar structures in the current market"

Stacey Flor and Dan Smith, who were responsible for the transaction at Eurohypo, said:

“This innovative restructuring solution will allow the further development of a major City of London property and demonstrates Eurohypo’s desire to recover value from distress. This transaction is indicative of our market leading positioning in the UK for deals of this kind, our detailed understanding of Real Estate and our confidence in the project.  Working with Clifford Chance, we built on the knowledge obtained in the Marcol House restructure (completed in 2009) and Clifford Chance again demonstrated their market leading position by advising on all aspects of the transaction  including debt, tax planning and the joint venture arrangements. The high professionalism and hard work of all the team ensured the successful execution of this complex transaction”

Partner Franc Peña was assisted on real estate and joint venture aspects of the transaction by London Real Estate Senior Associate, Matt Taylor.  Partner, Mark Rees-Jones advised on the facility arrangements assisted by Senior Associates, Zak Ikponmwosa and Heather Buttle and Associate, Jessica Saya. Director, Marianne Toghill and Associate, Michael Weissman advised on the Construction elements of the transaction. Director, Sebastian Daly and Associate, Allegra Feltz advised on Tax. This multi-disciplinary and cross-practice team highlights Clifford Chance's "one-stop shop" approach for our clients in the real estate sector.