Cheyne Capital Takes Control of London's £130M Borough Yards Scheme

Lender Cheyne Capital has taken control of the £130M Borough Yards mixed-use development from Mark Capital Management after the scheme struggled with leasing and market shifts.

By: AXL Media

Published: Apr 9, 2026, 11:31 AM EDT

Source: Bisnow

A Strategic Handover Near South Bank

The transition of Borough Yards to Cheyne Capital was characterized as a consensual restructuring rather than a formal foreclosure. Cheyne Capital, which had previously provided a £123 million refinancing package to Mark in 2023, now assumes full operational control of the site. The decision by Mark Capital Management—formerly known as Meyer Bergman—to exit the project stems from the natural expiration of the real estate fund that initially acquired the site. After an unsuccessful attempt to sell the asset on the open market, the developer chose not to inject further capital, facilitating the management shift.

From Vinopolis to Borough Yards: A Complex History

The site was originally acquired by Meyer Bergman in 2016 following the closure of Vinopolis, a long-standing wine-themed attraction. After securing planning consent for a scheme initially valued at £300 million, the developer embarked on a major transformation of the Victorian arches. The completed project, which opened in 2022, was designed to bridge the gap between the historic Borough Market and the modern commercial requirements of the South Bank. Today, it hosts a blend of upscale food and beverage outlets, including Barrafina and Brother Marcus, alongside 51,000 square feet of flexible office space operated by The Office Group.

Economic Headwinds and Leasing Challenges

Borough Yards’ trajectory was significantly altered by the timing of its launch. Opening in 2022 placed its initial leasing phase directly in the shadow of the COVID-19 pandemic, which tempered retail and office demand. These localized issues were further exacerbated by the global rise in interest rates, which placed downward pressure on asset valuations across the London real estate market. The project's difficulties draw comparisons to Coal Drops Yard in King’s Cross, highlighting the broader challenge of establishing new retail "destinations" in areas that already experience high, but often transient, foot traffic from tourists and commuters.