British Land has bought out the £286.4m of lease financing on Meadowhall.
The transaction means that British Land now owns the Sheffield shopping centre on a fully unsecured basis. When British Land acquired Meadowhall last July, the property came with this funding – provided by Lloyds TSB Leasing, Capital Bank and HSBC Asset Finance – attached.
According to British Land, the stream of payments on the lease finance was based on significantly higher interest rates than todays. The gap was reflected in a £92m reduction in the price British Land paid for Meadowhall.
British Land has funded the buy-out from its unsecured bank facilities. It recently increased these by £300m, with a five-year committment underwariten by Barclays Bank. The loan is currently out for syndication.
EGi News 12/04/00
