7th Nov 2014 07:44
LONDON (Alliance News) - Capital & Counties Properties PLC Friday said it has had a positive start to the second half of the year, with demand strong for its Covent Garden properties and progress made on the Earls Court Plan, and its Covent Garden holdings company launched a GBP150 million debt placing in the US to refinance.
In a statement, Capital & Counties said the Covent Garden holdings company was privately placing GBP150 million worth of 10 and 12 years senior unsecured notes with five US institutional investors.
The issue consists of two tranches: GBP75 million of 3.63% senior notes due 2024 and GBP75 million of 3.68% senior notes due 2026. Closing and funding of the transaction will occur in December, and the proceeds will be used to repay bank debt and for general corporate purposes, the property company said.
"The transaction enhances the unsecured platform at Covent Garden which was established earlier this year, extending the debt maturity profile and the already strong liquidity position through a new source of long-term funding at attractive, fixed-rate coupons," said Capital & Counties Finance Director Soumen Das.
Royal Bank of Scotland was sold placement agent for the transaction.
Separately, Capital & Counties said it was achieving higher rents in its Covent Garden properties, and it's on track to achieve its estimated rental value target of GBP85 million by December 2016.
It said it had achieved a new Zone A rent at a property on James Street of GBP925 a square foot, up from the Zone A rent of GBP800 a square foot in June of this year. New lettings and renewals were completed at 11.1% above June's estimated rental value, it said.
The company has also expanded the Covent Garden estate, buying 10 Bedford Street, a deal that took its spending on acquisitions so far in 2014 to GBP144 million.
It said it had a loan to value of 10% and GBP754 million of pro forma adjusted liquidity as at September 30.
"Covent Garden continues to capture the imagination of both tenants and visitors, which is reflected in the strong demand for our retail, dining and residential space," Chief Executive Ian Hawksworth said in a statement.
"The Earls Court Masterplan, one of the most important regeneration opportunities in central London, is progressing well and at Lillie Square, construction of the first phase will begin shortly," he added.
By Steve McGrath; [email protected]; @stevemcgrath1
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