AshbyCapital has secured a £53m loan facility from Deutsche Hypo for Morfa retail park in Swansea.
The financing, at a loan-to-value ratio of 60%, follows the cash acquisition of the retail park by AshbyCapital’s group investment company in December 2015.
The facility includes a capex element to fund AshbyCapital’s and asset manager Quadrant Estates’ planned value-add initiatives for the property, the first of which is the expansion of one of the units to provide a new 50,000 sq ft large-format fashion and home store for existing tenant Next.
Morfa retail park is fully let to retail tenants including Morrisons, Currys PC World, B&Q, Next, TK Maxx, Argos and Sports Direct. Restaurant tenants include KFC, Pizza Hut, Frankie & Benny’s, Harvester and Starbucks.
Charles-Etienne Lawrence, vice president of AshbyCapital, said:“Morfa Retail Park is the premier shopping centre in the area. Deutsche Hypo has shown its confidence in this fully-let asset and its potential by providing the financing for our recent purchase and our planned improvements.”
Walter Love, senior director at Deutsche Hypo’s London branch, said: “Morfa Retail Park shows good upside potential through active management that we are confident AshbyCapital will be able to achieve.”
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