King & Wood Mallesons has advised Cain Hoy Enterprises, LLC (“Cain Hoy”), a permanent capital company, in leading a consortium of investors including Galliard Homes and MG Properties, the real estate investment and development arm of McCourt Global, in a partnership with the Bard family’s Plough Yard Developments Ltd to create a new mixed-use development in London’s Shoreditch. The substantial site is in a prime location next to what will be Amazon’s new European headquarters, and sits less than five minutes’ walk from Liverpool Street and Shoreditch High Street stations.
The project, known as The Stage, incorporates the remains of Shakespeare’s 16th century Curtain Theatre, where Romeo and Juliet was first performed. The deal will see Plough Yard Developments Ltd retain the freehold while granting a new 250-year lease to the consortium to develop the 2.3-acre site, which has consent for a £750m GDV mixed-use scheme including a 40-storey residential tower and over 250,000 sq ft of office, retail and leisure accommodation set around over an acre of vibrant public space. The remains of the theatre will also be excavated and preserved as part of the development, providing a new tourist attraction for domestic and international visitors. Working alongside the consortium, Plough Yard Developments Ltd will keep a stake in this internationally important heritage visitor centre.
Jonathan Goldstein, Head of European Investments and Cain Hoy, said: “This is an historic site at the heart of one of Central London’s most vibrant areas. Shoreditch, home to the capital’s internationally famous ‘Tech City’, is an exciting residential, commercial and investment destination. We are pleased to be working on this deal with our partners Galliard Homes – with whom we already have a joint venture arrangement platform – and MG Properties. Alongside other investments such as Islington Square and Millharbour, this deal further highlights our ability to act decisively to deploy significant capital.”
Sarah Bard of The Estate Office, Shoreditch, said: “Pringle Brandon Perkins and Will's scheme, designed by John Drew and Therese Bak, celebrates the historical and cultural importance of Shakespeare's ‘The Curtain’ theatre amidst first class design. We are delighted to be working with Cain Hoy, MG Properties and Galliard to deliver The Stage - a unique place in Shoreditch to live, work, shop and play. This will be a world-renowned destination in the London Borough of Hackney - home to the very first example of Elizabethan theatre.”
Simon Tager, Real Estate partner at King and Wood Mallesons, said: “We were delighted to act for the Cain Hoy, Galliard Homes and MG Properties consortium on their exciting venture in the heart of Shoreditch - it was a complex, multi-disciplined transaction relating to a historic part of Central London that is now strategically positioned for investment and mixed-use development and where there will certainly be heightened activity in the years to come. We hope this is the start of a long relationship with the consortium on both the unique development of The Stage and beyond.'
The full King & Wood Mallesons team was led by Real Estate partner Simon Tager and consisted of Corporate partner Michael Goldberg, Tax partner Clive Jones and Finance partner Simon Fulbrook.
This work follows the Real Estate team’s recent advice to British Land on the establishment of Broadgate REIT as holding company for joint venture as 50:50 owners of Broadgate.