Capital & Regional has begun a process to refinance its £380m of secured debt.
It is working with Rothschild to explore a long-term fixed-rate debt package with a shorter-term floating rate to replace a similar structure already in place.
The debt will replace a loan from Morgan Stanley on six assets in the Mall Fund, which has £233m of debt at a fixed interest rate of 1.9% and a floating rate tranche of £147m that is hedged to provide a rate no higher than 2.8%.
In total the present finance package costs the firm 3.5% as of the end of December 2015.
With the loan due to expire in May 2019, the group aims to take advantage of the low margins being offered by lenders, especially insurers.
The company was turned around in 2014 with the loan from Morgan Stanley that took it out of a covenant-breaching CMBS.
• To send feedback, e-mail mike.cobb@estatesgazette.com or tweet @MikeCobbEG or @estatesgazette
