Shopping centre investor Intu Properties is planning to launch a £485m CMBS to refinance the securitised MetroCentre loan.
The standalone, fixed-rate CMBS is expected to have just one tranche with a 10-year maturity and 15-year legal final.
Intu will pay off the existing £509m CMBS using the net proceeds of the proposed issue and at least £24m of equity.
No timeline was given for the bond, which will be secured on the 2m sq ft MetroCentre Gateshead shopping centre.
The existing CMBS is to mature in February 2015.
Lloyds, HSBC and Rothschild are advising.
Also this week Harry Hyman’s Primary Health Properties has issued an “innovative” 12-year, secured, floating-rate bond to raise £70m to refinance debt.
The bond was issued to an institutional investor, arranged by Independent Debt Capital Markets, and will pay interest at a margin of 220 basis points over six-month LIBOR.
The healthcare REIT issued a floating-rate note and kept in place long-term swap liabilities, rather than using a fixed-rate bond and incurring break swap costs of around £32.8m.
The bond also hedges the company against any potential interest rate rises.
JC Rathbone managing director John Edwards said: “This is another example of how institutions are becoming more flexible about real estate debt markets.”
bridget.oconnell@estatesgazette.com
