25th Mar 2008 07:01
Great Portland Estates PLC25 March 2008 25 March 2008 Great Capital Partnership ("GCP") Financing GCP, the central London joint venture between Great Portland Estates plc (GPE)and Liberty International PLC announces that it has arranged a new £225 millioncredit facility to provide financial resources for asset repositioning andinvestment projects. Previously GCP, which held investment properties of around£650 million at 31 December 2007, had no external debt. Following the recentproperty swap and lease extension transaction with The Crown Estate there aremany refurbishment, development and asset management opportunities which couldlead to significant rental income growth for the partnership. GCP's partnerswill also have the flexibility to use the credit facility to refinance theirexisting equity investment in the joint venture. The credit facility has been structured as a non recourse, secured term loanmaturing in 2013 and has been underwritten by Eurohypo, HSBC and Lloyds TSB. GCPwill pay a margin which varies between 75-115bp depending on the level of loanto value and interest cover ratios. GCP anticipates operating at the bottom endof the margin range. Commenting on the transaction, Timon Drakesmith GPE's Finance Director said; "We are delighted to have arranged this attractive debt facility with a group ofrelationship banks. GCP has plenty of growth potential and despite thedifficulties in the credit markets this deal demonstrates that debt finance isavailable at a sensible cost for well located property portfolios". Michael Acratopulo, Eurohypo; Kevin Hutchings, HSBC and Shela Maine, Lloyds TSBjointly commented; "We are all pleased to be supporting our long standing relationships with GPEand Liberty International PLC in the joint venture. The assets are high qualityand offer strong potential; we look forward to working with GCP as the portfolioevolves over time." Contacts:Great Portland EstatesToby Courtauld Chief Executive 020 7647 3042Timon Drakesmith Finance Director 020 7647 3015 Capital & CountiesIan Hawksworth Managing Director 020 7887 7041Gary Marcuccilli Director 020 7395 2751 FinsburyJames Murgatroyd 020 7251 3801Gordon Simpson 020 7251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
GPOR.LINTU.L