Lincoln MGT, a joint venture between Lincoln Property Company and MGT Investment Management, has agreed to a £107m construction loan with BentallGreenOak to deliver phase two of the landmark Station Hill mixed-use development in Reading. Knight Frank advised Lincoln MGT on the development loan.
Construction work on the wider Station Hill development is already underway. Lincoln MGT secured a construction loan to deliver 600 Build to Rent homes as part of phase one, with the first homes ready for occupation from the end of 2022.
This 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.£50m in the surrounding community infrastructure. ONE Station Hill will be completed in early-2024.
“We are delighted to be partnering with yet another institutional investor in BentallGreenOak 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.”Callum Thorneycroft, Managing Director, MGT Investment Management
Lincoln MGT has appointed Sir Robert McAlpine and preparatory works have already begun for the second 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for the first time in generations following the demolition of the Garrard Street car park, regarded by many as an outdated and unpleasant welcome to Reading.
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.
“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.”Martin Sheridan, Principal of UK Debt, BentallGreenOak