13th May 2014 10:39
LONDON (Alliance News) - London & Associated Properties PLC Tuesday said it has recently agreed a new credit facility for GBP40.1 million with Royal Bank of Scotland Group PLC, using GBP4.1 million from its cash reserves to reduce the loan from a previous GBP44.2 million facility.
The company said in the run-up to agreeing the new facility, it terminated the last of its long-dated interest rate swaps secured against this facility in a series of separate transactions. The combined costs of breaking these swaps was GBP10.7 million. This transaction will reduce the ongoing interest costs significantly, London & Associated said, without saying the interest rate it is paying on the new credit facility.
In an update for 2014 to date, the firm said it has also received a number of offers from retailers for a vacant site at Orchard Square, which as previously occupied by fashion retailer USC.
Orchard Square is a small open-air court shopping centre located in Sheffield, England.
London & Associated Properties said it intends to split the unit to maximise returns, while most of the ground floor is now under offer to a national retailer.
"There are verbal offers on the remainder of the space and our agents are working up detailed term sheets on our behalf," it added.
London & Associated Properties shares were quoted flat at 48.99 pence Tuesday
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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