Amberside Advisors has recently assisted Folera Ltd in closing the refinancing of the Poplar Baths and Dame Colet project.
The Poplar Baths Leisure Centre is based in the London Borough of Tower Hamlets and was originally built in 1933, but closed to the public in 1988. After years of decline and disrepair, the leisure facilities were identified as a community asset that should be restored and returned to the community.
In 2013, Folera entered into a 38 year Development Agreement, with 35 years of operations, to redevelop the Grade II-listed building into a fully functioning leisure centre with a 25m swimming pool and learner pool, restored plunge pool, a Sports England standard sports hall, large studio and gym with a women’s only area. The company also agreed to construct a new state-of-the-art rooftop multi-use games area, as well as 100 new socially let apartments and a new youth centre, all as part of the Council’s community regeneration agenda.
The project was refinanced with debt from Nord LB. During the refinancing, due to the impact of COVID-19 on the leisure industry, the Development Agreement was varied to include a partial hand-back of leisure services to the London Borough of Tower Hamlets.
Richard Turner, Director at Amberside Advisors commented: “We are very pleased to have helped Folera close this refinancing, especially given the challenging conditions in the financing markets.”
Neville Murton – Corporate Director of Resources at LBTH said: “The support we received from our advisers was instrumental in bringing to a successful conclusion a deal fraught with difficulty following the COVID pandemic. All parties worked together to avoid the prospect of a termination event whilst at the same time re-casting the relevant risk responsibilities, reducing payments by the Council and ensuring that the TH leisure contract can, in the future, be procured singularly.”