23rd Jul 2018 11:53
LONDON (Alliance News) - Property investor Town Centre Securities PLC on Monday said it has finalised talks with Leeds City Council in relation to a re-financing of Merrion House.
Merrion House is jointly and equally owned by Town Centre Securities and a Leeds City Council liability partnership.
The Merrion House redevelopment was completed by Town Centre Securities in early February. The 170,000 square feet, ten-storey building is occupied by Leeds City Council on a 25-year lease.
Town Centre Securities has agreed with the Council to advance all base rent due from October until the lease end on February 11, 2043, discounted at an annual equivalent rate of 3.5% plus costs.
Town Centre Securities said it will receive GBP26.4 million in cash as a part of financing arrangement within the deal.
On that basis Leeds City Council will continue to pay quarterly rent of GBP800,000 offset by an interest charge calculated on an effective interest rate basis.
"We're delighted to announce this agreement with Leeds City Council which gives us both enhanced financial flexibility to fund our ambitious growth plans and an immediate benefit to our leverage ratios," said Town Centre Securities Chairman & Chief Executive Edward Ziff.
Shares in Town Centre Securities were trading 0.5% lower on Monday at 286.60 pence each.
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