Bruntwood has secured a £115.5m debt facility with Aviva Investors Real Estate Finance to finance its ongoing growth in regional cities.
The 15-year loan, which has a fixed rate of 3.46%, will be used to partially refinance the company’s £300m medium-term loan facility with RBS, HSBC, Barclays and Santander, which expires at the end of 2019.
One of its main goals is to bring forward the first commercial phase of Circle Square, Bruntwood’s 450,000 sq ft office development in Manchester (pictured).
Chris Oglesby, chief executive of Bruntwood, said the deal was part of the company’s long-term approach to sustainable growth, adding that it has secured a £1.5bn GDV development pipeline.
He said: “This new facility allows us to respond to the strong customer demand that we are experiencing by bringing forward another significant portion of that pipeline.
“It also affords a level of flexibility that will allow us to remain nimble in the way in which we both accommodate our customers’ requirements and approach further acquisitions in this ever changing, uncertain world.”
The loan is secured against 12 buildings in Bruntwood’s portfolio in Manchester, Leeds, Liverpool and Birmingham and has a 55% loan-to-value ratio.
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