ING and Delancey team up to refinance Notting Hill Estate

ING and Delancey have teamed up in the £135m refinancing of the Notting Hill Gate Estate, a mixed-use retail and office development owned by a joint venture between Frogmore and a fund advised by Morgan Stanley Real Estate Investing. 

ING provided the majority of the funding, while Delancey contributed a £38 million junior loan through its private credit strategy. ING has been part of the transformation of the Notting Hill Gate Estate  since 2015. The estate is a 185,000 sq ft mixed-use freehold asset in Notting Hill Gate, a sought-after area of West London.

Comprising of three mixed-use blocks — North, South, and East — featuring retail spaces on the lower levels and office accommodation on the upper floors, the Estate benefits from excellent transport links nd is located next to Notting Hill Gate Underground Station, which serves more than 16.5 million passengers a year.

ING’s role as senior lender underscores its commitment to supporting high-quality assets in prime locations, the group said. The refinancing deal also highlights ING’s strategic focus on central London real estate and its ability to deploy substantial funding for major commercial projects.

“We’re proud that ING has played a pivotal role in transforming the Notting Hill Estate over the past decade”, said Samuel Ellis, Head of Origination, UK Real Estate, ING. “Since ING financed the acquisition of the 1950s estate in 2015, it has been modernized into a high quality, mixed-use asset. We look forward to continuing our long standing partnership with Frogmore and MSREI to drive further success in the Notting Hill area of Central London.”

Delancey, through its private credit strategy, have been actively investing in central London assets. The group recently provided a mezzanine tranche in the £235 million refinancing of 280 Bishopsgate, a 275,000 sq ft office development in the City of London and a £16 million whole loan to support the acquisition of a 42,000 sq ft prime freehold office in Farringdon, in central London.

“This transaction marks a continuation in our strategy of working with high-quality sponsors to finance prime-located assets that are underpinned by strong transport connectivity”, said Martin Kom, Director of Debt Strategies, Delancey. “The Notting Hill Gate Estate is an asset we know intimately from our previous ownership experience, and we are pleased to be involved in such a unique site once more.”

Delancey previously had an ownership position in the Estate between 2004 and 2010 through the Metro Shopping Fund on behalf of clients. 

“The ongoing support of our longstanding lender, ING, alongside Delancey, will enable us to continue the repositioning and improvement journey we started in 2015,” said Andrew Rogers, COO & Group Treasurer, Frogmore.  “Both Lenders have demonstrated their commerciality and commitment to high quality assets, in strong locations, backed by good sponsors, even in a challenging market. We look forward to working with them both to deliver our business plan”.