Berlin Hyp and Delancey partner on St. James's office refinancing

German bank Berlin Hyp and Delancey have joined forces to provide a £241 mln (€279 mln) refinancing package for H.I.G. Realty's St. James's office redevelopment in London.

20 Carlton House Terrace

Berlin Hyp is acting as the senior lender, while Delancey, through its credit strategy, is the junior lender.
This marks their second collaboration, following a successful refinancing of 280 Bishopsgate. The current financing replaces the original development loan after the completion and leasing of the redeveloped 20 Carlton House Terrace.
The recently completed prime office building, designed by Roger Stirk Harbour + Partners, is a modern office headquarters aiming for BREEAM Excellent and WELL Platinum certifications. 
It offers approximately 13,657 m2 of high-quality office space, plus an underground car park, totalling 17,559 m2 of leasable area. The redevelopment, finished in April 2025, incorporates sustainable features like air source heat pumps and smart systems to move towards net-zero operational carbon.
Martin Farinola, head of Real Estate Debt Strategies at Delancey, said:  “This landmark refinancing underscores the momentum of our expanding private credit platform, as we partner with Berlin Hyp/LBBW for a second time to support a best-in-class redevelopment backed by a top-tier sponsor in H.I.G.. Across our debt and equity strategies, we’re deploying capital into exceptional opportunities where the demand-supply imbalance is driving powerful rental growth in the central London office market.” 
Craig Prosser, managing director, head of Real Estate Finance UK at Berlin Hyp, commented: “We are excited to refinance this high-quality redevelopment, as we continue to have high conviction in the prime central London office market. The project constitutes a prime example of sustainable and future-ready real estate, qualities which we are seeking. By engaging in this project, we are reinforcing our position as a leader in driving growth and delivering exceptional opportunities in this dynamic market.” 
Chris Zlatarev, managing director, H.I.G. Realty in Europe, added: “We are delighted to partner with Berlin Hyp and Delancey in the refinancing of 20 Carlton House Terrace, a best-in-class, super-prime St. James, London redevelopment as demonstrated by substantially pre-letting the building before completion.”
Last month, Delancey formed a strategic partnership with Cynergy, a B2B challenger bank. Their goal is to facilitate around £1.5 bn (€1.7 bn) in property-related debt transactions over the next three years.