Capital & Counties Properties has confirmed that a new £665m unsecured debt facility for Covent Garden has completed.
The unsecured revolving credit facility has a five-year term and replaces three existing secured Covent Garden facilities.
HSBC Bank and BNP Paribas acted as mandated lead arrangers for the facility, with Royal Bank of Scotland and Credit Agricole as arrangers and Santander and Wells Fargo completing the syndicate.
CapCo said the new facility provided “improved operational and financial flexibility to support the value growth strategy through the expansion of the premium retail and dining offer and selective developments including Kings Court and Carriage Hall”.
It has set a target for the estate – valued at £1.2bn at 31 December – to have reached an estimated rental value of £75m by December 2016.
CapCo finance director Soumen Das said: “I am delighted to have completed this major new debt facility with our relationship banks.
“It is CapCo’s first unsecured debt facility and marks a significant step forward in the evolution of the group’s capital structure and funding model.”
Romain Simon, head of UK real estate finance of BNP Paribas and Matthew Webster, global head of real estate finance of HSBC Bank, said: “The banks are pleased to provide this significant commitment to CapCo on this key transaction as it moves from a secured to an unsecured financing model. We look forward to continuing to work with CapCo to support its value growth and value creation strategy across its business.”
bridget.oconnell@estatesgazette.com
