Manchester-based property company Bruntwood has agreed a £200m medium-term funding agreement with three banks.
The firm has added Barclays Real Estate to an existing club agreement with RBS and HSBC. Under the agreement, Barclays has taken a 15% share of the £200m facility and provided the company with an additional £30m.
In addition to the £200m club facility, Bruntwood has a £440m commercial mortgaged backed securitisation expiring in 2014 which ratings agency Fitch recently put on negative outlook, because of falling vacancy rates across the firm’s portfolio.
Bruntwood banking director Kevin Crotty said: “Bruntwood has always made long-term sustainable growth its priority, rather than short-term commercial gain. As a result, it is companies such as ourselves that have emerged from the recession fitter and stronger. In a market where many property owners are constrained by excess debt, Bruntwood’s financial strength remains a major advantage.”
He added: “The ability for Bruntwood to attract new bank lending in this very difficult environment demonstrates our financial standing and ability to invest in our product – a very important message in attracting and retaining customers in our portfolio. It also demonstrates that the banks are very much open for lending to the right businesses.”
Matt Jones, business development director for Barclays Real Estate, said: “This is one of many new-to-bank deals completed recently by Barclays Real Estate in Manchester and highlights our appetite to support quality clients in a tough market.”
daniel.cunningham@estatesgazette.com
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