The funding will be used to deliver a purpose-built flexible office and professional community space, located between Handyside Street and York Way, and operated in partnership with The Office Group.
It will offer 170,000 sq ft of workspace to meet the needs of small businesses and start-ups.
Architecture studio, Piercy&Company, has designed the new building which is currently under construction and set to complete in 2024.
Funding for the project meets the Loan Market Associations’ green loan principles, which facilitates and supports environmentally sustainable economic activity, such as the reduction of emissions or energy usage, or a cut in the use of scarce natural resources.
The building is set to be built to a BREEAM ‘outstanding’ specification.
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The loan is the third of this type for King’s Cross supported by HSBC UK following a £400m loan for the development of Facebook’s UK headquarters in 2018, and a further £69m for the Cadence residential scheme in 2020.
“We are delighted to support King’s Cross with a third green loan facility for the development of their new, industry leading flexible workspace building,” said David Stephens, HSBC UK’s head of corporate real estate for London.
“This loan further cements Argent LLP’s position as a leader in sustainable property development in the UK, core to the ongoing strategy for the King’s Cross estate.
“This funding demonstrates the continued demand for green financing and the focus on sustainability across the real estate sector, as well as HSBC’s commitment to support and develop the green loan market.”
Michael Lightbound, partner at Argent LLP, added: “Sustainability is hugely important to us at King’s Cross, not only in the physical construction of our buildings, but in the financing of that construction.
“This is a major investment for King’s Cross, and we are delighted to work with HSBC again on the financial delivery of this hugely important building.
“This new space is vital to supporting the growing, diverse ecosystem of businesses at King’s Cross, home already to some of the world’s most innovative companies and organisations.”
Rob King, HSBC UK’s head of sustainable finance, commented that the bank was committed to working with all of its clients to help them on their journey to net zero, and have pledged to achieve net zero from its financed portfolio by 2050.
“KCCLP is taking ambitious steps towards its own goals and we are proud to be part of that process,” he stated.
“Supporting developments such as this one, in the heart of London’s King’s Cross, will not only help Argent to deliver its sustainability strategy, but also help the UK as a whole in the transition to a lower carbon economy.”
Richard Bentley, Helaba’s head of real estate finance for the UK, commented that sustainability was an integral part of Helaba’s value system.
“The financing of this new building underlines our continued commitment to achieving our ESG goals and supporting our key clients.
“We are delighted to have closed another green financing with the Argent team, who continue to lead the market in the provision of cutting edge, sustainable real estate.”