FINANCE: Oxford Properties has secured a £250m corporate debt facility for its European business with a trio of lenders.
Wells Fargo, CIBC and Lloyds have provided the new revolving credit facility, which is guaranteed by the real estate business’s parent, Canadian pension fund OMERS.
The facility will expand Oxford’s funding sources for current and future development projects, or provide capital expenditure required by the company’s management-intensive assets.
Oxford’s European portfolio includes the 1.4m sq ft Green Park business park in Reading, which it bought in 2011, and City retail trophy the grade I-listed Royal Exchange, which it acquired last year.
It also works in partnership on investment and development, and last month bought a £300m Bond Street retail portfolio with Richemont.
Oxford’s developments include the £320m St James’s Market redevelopment with the Crown Estate and the 500,000 sq ft London Wall Place scheme in the City with Brookfield for which Wells Fargo recently provided a £130m development loan.
Paul Brundage, executive vice-president and senior managing director at Oxford Properties, said: “Securing this facility is directly in line with our global financing strategy to complement asset-specific financing with corporate funding, and builds on the success of our Canadian business’s C$1.1bn unsecured debenture issue in 2013.
“Our strategic plan envisages our becoming a £6bn business in Europe by 2018. Combined with the deep available equity of OMERS pension fund, accessing this third-party debt will enhance our overall returns and the facility will directly support our growth, increasing our overall capital base in Europe and contributing to the continued growth of our European portfolio and platform.”
bridget.o’connell@estatesgazette.com
