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Argent to fund Kings Cross after bank deal falls through

King’s Cross developer Argent has revealed it will build the 750,000 sq m mixed-use London scheme with its own funds after a finance deal with a bank consortium fell through.

Future work on the £2 billion scheme was expected to be funded by a £400 million deal with a consortium containing Eurohypo and Deutsche Postbank. But the arrangement failed to materialise, with Argent earlier this month revealing the credit crunch was “badly affecting” progress on the scheme.

The London-based developer, which is backed by the BT Pension Scheme, will now finance the work itself. It is understood Argent will do this partly through an existing mezzanine finance facility.

Outline planning permission for the scheme was granted by Camden Council last year, including more than 400,000 sq m of office space and 2,000 new homes.

The project is being developed by Argent with land-owners London & Continental Railways and DHL-Exel.