Capital & Regional refinances Mall portfolio

Published:  05 January, 2017

£372.5m borrowed at 3.27 per cent secured on five town centre malls

Capital & Regional has refinanced the debt on its five wholly-owned Mall properties by entering into new debt facilities totalling £372.5m, of which £362.5m has been drawn.

Three new facilities have been entered:

  • a £165m 10-year loan with Teachers Insurance and Annuity Association of America with a one year extension option;
  • a £107.5m seven-year loan with Wells Fargo Bank International Unlimited Company
  • a £100m bank facility of five years with two one-year extension options with The Royal Bank of Scotland. £90m of this facility has been drawn down with a further £10m available to fund capex.

The £107.5 million facility is secured on The Mall, Luton, while the other two facilities are secured on the four assets at Blackburn, Maidstone, Walthamstow and Wood Green. The weighted average maturity of the new facilities is 7.8 years, rising to 8.8 years if the extension options are assumed to be exercised. Interest on the new facilities has been fixed resulting in an overall blended rate of 3.27 per cent. This compares to an equivalent rate of 3.52 per cent on the previous facility prior to refinancing and following the sale of The Mall, Camberley.

Repayment and financing charges total £11m.

Hugh Scott-Barrett, Chief Executive, said: “This refinancing achieves the objectives we set out at the time of our half year results announcement in August 2016. It provides the group with the security of long term funding while also taking advantage of the historic low level of current interest rates. It also diversifies the sources and maturities of our debt, and increases the quantum to fund future capex efficiently at the asset level whilst maintaining significant flexibility for asset recycling.”

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