Shaftesbury announes new financing arrangements

Shaftesbury PLC

Shaftesbury announces new financing arrangements

Shaftesbury PLC ("the Company") announces that it has arranged a new £130 million fifteen year term loan with Aviva Commercial Finance Limited ("Aviva"). The loan is secured on certain properties held in a subsidiary company and has a fixed interest rate of 3.2% throughout the term. The loan is repayable in full at maturity in March 2030.

On drawing the loan from Aviva, the Company will cancel a £100 million revolving credit facility with Nationwide Building Society ("Nationwide"), which was due to expire in September 2016. The Company's remaining £50 million facility with Nationwide, which is also due to mature in 2016, will be refinanced in due course.

Additionally, the Company has agreed to terminate £70 million of interest rate swaps at a cost of £28.1 million, equivalent to a reduction in EPRA net asset value per share of around 10p, equivalent to 1.4% of EPRA NAV at 30 September 2014 (£7.13).

On a pro-forma basis, these transactions will increase the weighted average maturity of the Group's debt from 6.7 years to 8.7 years and reduce the weighted average cost of debt by around 25 basis points.

Chris Ward, Finance Director, said, "We are pleased to have secured this financing during a period of extremely low gilt yields, and with a lender of the calibre of Aviva. Long-term funding is a natural fit with our business model and portfolio of good quality assets with secure income streams."

18 March 2015

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About Shaftesbury

Shaftesbury PLC is a Real Estate Investment Trust, which owns a unique real estate portfolio extending to 14 acres in the heart of London's West End - a highly popular, sought-after and prosperous destination for visitors and businesses. Our holdings are concentrated in Carnaby, Covent Garden, Chinatown, Soho and Charlotte Street.

Our objective is to deliver long-term outperformance in growth in rental income, capital values and shareholder returns.

We focus on retail, restaurants and leisure in the liveliest parts of the West End. Our portfolio now comprises 587 shops, restaurants, cafés and pubs, extending to 1 million sq. ft., which account for 72% of our current income. In our locations these uses have a long record of occupier demand exceeding their availability. It also includes 416,000 sq. ft. of offices and 499 apartments for rent, which provide 16% and 12%, respectively, of our current income.

In addition we havea 50% interest in the Longmartin joint venture with The Mercers' Company, which has a long leasehold interest in St Martin's Courtyard in Covent Garden. Extending to 1.9 acres, it includes 22 shops, ten restaurants and cafés, 102,000 sq. ft. of offices and 75 apartments.

Our proven management strategy is to create and foster distinctive, attractive and prosperous locations. Its implementation is supported by an experienced management team with an innovative approach to long-term, sustainable income and value creation and a focus on shareholder returns. We have a strong balance sheet with modest leverage.

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