Real estate investment trust Great Portland Estates has secured a new 10-year debt facility with Canada Life Investments for The Great Victoria Partnership, GPE's joint venture with Liverpool Victoria Friendly Society.
The new facility is worth a total of £80m, half of which is technically loaned to GPE.
The loan is secured on the partnership's long leasehold interest at Mount Royal, 508/540 Oxford Street, London, which represents a loan to value of around 51%, at a fixed interest rate for the term of the loan.
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
There is no scheduled amortisation and the loan expires on July 17th 2022.
Nick Sanderson, GPE's Finance Director said: "We are delighted to have arranged this long-term, attractively priced loan for GVP with a counterparty of Canada Life's quality, a new lender to GPE. This financing enhances both GPE's debt maturity profile and diversification of debt funding sources."
Wendy Mayall, Chief Investment Officer at LVFS, added: "Given the challenging debt market conditions that prevail, this refinancing is testament to the quality of GVP's prime retail property holdings at Mount Royal. The attractive terms will help enhance the overall returns of the Partnership."
The share price rose 0.19% to 421.30p by 08:24.
NR
-
Review: Puerto Rico – embrace the spirit of BoricuaTravel Natasha Langan discovers why the indigenous name for Puerto Rico has come to define this Caribbean island’s vibrant culture
-
RICS: Property market confidence falls further as Autumn Budget loomsProperty experts claim buyer confidence dropped for a second month in August, with several citing Budget speculation as a headwind
