Shard construction moves closer with £196 million deal

CLS Holdings plc, one of the three partners in the Shard along with Sellar
Property Group and CN Limited (for and on behalf of the Halabi Family Trust), announced the completion of an interim financing package.

The£196 million facility has been provided by Nationwide Building Society and Kaupthing Singer & Friedlander and will, in part, fund the purchase of the PricewaterhouseCoopers occupational lease in place at the existing building on the site known as Southwark Towers.

Teighmore, the company jointly owned by the three partners in the Shard project, has exercised its option with PwC who will now vacate the building before the end of 2007.

The funds will also be used to pay off the existing financing and to provide working capital for the current stage of the project.

"With this financing now in place we can secure vacant possession from PwC and move one step closer to delivering The Shard," says Sten Mortstedt, executive chairman of CLS Holdings plc. "We are delighted to have pre-let close to 50 per cent of the commercial element of the scheme – a remarkable achievement."

This follows the recent pre-letting of 190,000 sq ft of offices over the lower floors of the tower to Transport for London. TfL will take a 30 year lease at rent rising in line with the retail price index.

Teighmore has already announced the pre-letting of the 200,000 sq ft hotel element of the scheme to Shangri-La who are also taking a 30 year lease.