Wragge & Co advises Development Securities on £50 million forward funding agreement with Scottish Widows

Wragge & Co's Commercial Development and Investment team has advised Development Securities plc on a £50 million forward funding agreement with Scottish Widows Investment Partnership Property Trust. The deal will finance the first phase of Development Securities' speculative Hammersmith Grove development in Hammersmith town centre.

Located next to Hammersmith station and north of the Broadway shopping centre, the 1.5 acre site will be developed into two prime office buildings covering 275,000 sq ft. Construction of phase one, a building at the south of the site, is anticipated to begin later this year for completion in early 2013. This will comprise 110,000 sq ft of office space and 6,000 sq ft of restaurants and cafes.

Real estate chairman Robert Caddick and director Nisha Jassal advised on the transaction, with support from tax partner Lee Nuttall and planning partner Andrew Thomas and solicitor Victoria Longmore. The team worked closely with Development Securities' development director Simon Hesketh and project director Richard McCubbine.

Nisha Jassal said: "With debt finance still in short supply in the market, this forward funding transaction is a crucial catalyst for the redevelopment. Our technical expertise and experience working on significant development projects, combined with a close relationship with the client, enabled us to provide the right commercially-focused solution to secure this agreement."

Simon Hesketh added: "The sheer hard work and determination shown by the Wragge & Co team was instrumental in completing this deal. The team's commitment to client service meant it made a tremendous contribution in managing the parties involved and driving the deal forward."

Development Securities PLC is a property development and investment company. Carrying out substantial, complex developments, the company's major schemes under development are forward funded or the financial risk shared with a number of institutional partners. Wragge & Co has a long-standing relationship with the company, having advised it for more than 10 years. Ashurst is advising on construction matters relating to the current development.

The £2.3 billion Scottish Widows Investment Partnership Property Trust is the UK's largest retail property fund. Dundas & Wilson and CMS Cameron McKenna advised Scottish Widows. London Underground Limited owns the freehold of the site and was advised by Farrer & Co.

Wragge & Co's 70-lawyer Commercial Development and Investment team is one of the biggest practices of its kind in the UK. With a strong track record in the market, the team advises on major acquisitions developments and disposals for clients including Alfred McAlpine, Ballymore, Colliers Capital, JP Morgan's Peabody Fund, Marks & Spencer, Miller Developments and Multi Development.

Highlights include advising newly-formed developer Queensberry Real Estate LLP on its first development agreement. The agreement with Newport Council is for a proposed £110 million, 390,000 sq ft retail development at John Frost Square in Newport city centre.