Great Portland Estate, the FTSE 250 property company, has entered into a new £150m five year unsecured revolving credit facility, replacing an existing £50m facility which was due to mature in July.
The new facility has a headline margin of 175 basis points over Libor (the average rate of interest London banks charge) and was provided by a group of four relationship banks.
In addition to this new facility, GPE retains its existing £350m unsecured revolving credit facility which matures in November 2015.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Meanwhile, the Great Capital Partnership (GCP), a 50/50 joint venture between Great Portland Estates and Capco, has exchanged contracts to sell five West End properties to Great Portland for a combined price of £150m, or £75m for the half share the firm does not already own.
In a statement, Chief Executive Toby Courtauld said: "Whilst perhaps non-core to GCP, these are classic Great Portland assets so it makes good sense to buy in the half we don't already own. The acquisition both enables the refurbishment of Walmar House and 13/14 Great Castle Street in the near term and provides medium term repositioning opportunities in both Soho and Regent Street with a solid income return in the meantime."
The firm now currently has undrawn committed facilities and cash of more than £200m.
The share price rose 0.37% to 355.40p by 08:31.
NR
-
How taking a two-year career break could leave a £26k hole in your pensionCareer breaks are increasingly common but it is important to take steps to protect your pension, as gaps compound over time
-
Cash in on your attic: Thousands could be sitting dormant in your storageSelling your valuables at auction could be far more lucrative than you think. We take a look at how auctions work, and some tips to help you maximise your profits
