Olympia Secures £925m Senior Refinancing for Landmark New London Destination

Olympia is pleased to announce that it has secured a new c. £925 million senior transitional financing package, which will replace the existing construction loan at a lower level of leverage and with a significantly lower cost, as the redevelopment centred around the historic exhibition halls enters its completion and stabilisation phase.

The new facility has a term of up to five years and was secured on attractive terms that underscore the lenders’ confidence in the strength of the Olympia proposition and offering, as well as the quality of its ownership and management.  Deutsche Bank acted as sole arranger and lead underwriter for the debt with anchor syndicate participation from Citi.

Olympia is the iconic 140-year-old exhibition and events venue situated in West Kensington. Over the past five years the 14 acre site has been undergoing a significant redevelopment, which is transforming it into one of London’s largest and newest entertainment, culture, hospitality and business destinations. Economic analysis by Volterra shows that once mature, Olympia’s redevelopment will drive over £600 million of Gross Value Added (GVA) to the UK economy annually, up from £14 million previously, and attract over 10 million visitors annually across the destination as a whole.

Once complete the project will include over 350,000 sq ft of event space across five event and conferencing venues, including a new International Convention Centre collectively capable of hosting 300+ exhibitions and events annually.  

It will also comprise 550,000 sq ft of state-of-the-art sustainable new offices, offering some of the largest rooftop terraces in London, and flexible, interactive workspaces, with IWG and Premier League Studios, the Premier League’s new international content production arm, already confirmed as occupiers.

Accommodation for visitors will be provided by two new hotels, a 146 room citizenM and a Hyatt Regency offering 204 rooms, which are due to open this summer.

The project also brings two new entertainment venues to London including the British Airways Theatre, a 1,575-seat theatre, which will be the largest new purpose-built theatre in London in almost 50 years (since the National Theatre)when it opens in 2027, to be operated by Trafalgar Entertainment and The Shubert Organization. In addition, a new 3,800-capacity live music venue, the British Airways ARC is due to open in June and will be operated by AEG Presents.

Further enhancing Olympia’s day and nighttime offering, the development is due to deliver30 new restaurants, bars and eateries across 110,000 sq ft of space over the summer, comprising premium food and beverage concepts with operators including Incipio and D3 Collective.

Anew Wetherby Pembridge co-educational senior school has already opened within the project. It is focused on academia, sports and the creative arts and is operated by the Inspired Education Group

The project to transform Olympia – one of the largest redevelopments of its kind in Europe – is backed by institutional investors and delivered by Yoo Capital and DFI, together with recently appointed investor representative, Hines.

Commenting on the transaction, Michael Volkert, CEO of Olympia, said:

“Olympia is a truly unique asset with more than a century of history at the heart of London’s cultural and events landscape. With this significant redevelopment nearing completion, this financing package provides long-term capital that will help us bring to life a hugely exciting, vibrant new commercial destination that contributes to London day and night, attracting millions of visitors each year.”

Evercore and JP Morgan acted as financial advisers to Olympia and its sponsors. Freshfields LLP served as counsel to the sponsors and Olympia, and Clifford Chance LLP advised Deutsche Bank and Citi.