RDI REIT is looking to restucture a £144.7m debt pile held against four shopping centres – or offload some of the assets – after agreeing a debt standstill with lender Aviva Commercial Finance.
RDI had until yesterday (23 April) to remedy the breach of a £144.7m loan secured with Aviva on four shopping centres: Grand Arcade in Wigan; Weston Favell in Northampton; Birchwood in Warrington; and Byron Place in Seaham.
This would have required a cash injection or the addition of new collateral to reduce LTV to below 85%.
Aviva has now agreed a standstill to 11 October, during which the insurer said it would not take any action to accelerate its security under the facility agreement.
Both parties will progress either a consensual sales process of restructuring of the facility during the six months.
Net operating cashflows after interest costs of approximately £6.5m, on an annualised basis, will be retained within the facility.
RDI will not be required to provide further cash in respect of this facility during the standstill agreement.
RDI will update the market on its half-year results tomorrow (25 April).
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