| Tue 8 Nov 2011, 9:01 | | CCO - Capital & Counties Properties PLC - Capital & Counties Properties PLC |
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CCO
CCO - Capital & Counties Properties PLC - Capital & Counties Properties PLC
refinances at Covent Garden
Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom and Wales with registration
Number 07145041 and registered in South Africa as an external company with
Registration Number 2010/003387/10)
JSE code: CCO
ISIN: GB00B62G9D36
CAPITAL & COUNTIES PROPERTIES PLC (the "Company")
Press Release
8 November 2011
Capital & Counties Properties PLC refinances at Covent Garden
Capital & Counties Properties PLC ("Capco") is pleased to announce a new GBP300m
debt facility to refinance its 2013 Covent Garden loan. The refinancing includes
GBP60m of debt capital for acquisitions to allow Capco to further its
repositioning strategy in the area and is led by BNP Paribas and HSBC Bank plc
along with a further consortium of lenders.
Capco currently has over 830,000 sq ft of retail, leisure, residential and
office holdings in Covent Garden, including the Market Building and is
continuing to extract value through its proactive asset management strategy and
repositioning of the neighbourhood. Following the recent opening of Rugby Ralph
Lauren and several new lettings in the pipeline, the estate remains on track to
meet its 2013 ERV target of GBP50m, a demonstration of Capco`s successful
strategy of unlocking value in Covent Garden.
The new facility was comfortably oversubscribed, and the consortium of lenders
includes BNP Paribas, HSBC Bank plc, Bayern LB, Lloyds Banking Group, pbb
Deutsche Pfandbriefbank AG and Santander. Key features of the new loan are:
* Extends the maturity on GBP300 million of the Group`s debt until October 2016,
with a further 2 year extension available at Capco`s option subject to meeting
certain financial covenants
* GBP150 million has been drawn initially. A further GBP90 million is available
allowing Capco to use its cash balance more efficiently by paying down debt and
redrawing when required
* In addition, GBP60 million of the facility is available to finance existing
Covent Garden assets not currently secured, or to finance new acquisitions in
the Covent Garden area
* The financial covenants include a loan-to-value covenant of 70 per cent and
interest cover ratio of 130 per cent
The cost of debt on the new facilities will be circa 4 per cent on the drawn
amount, with hedging in place using swaps and caps. Interest rate swaps relating
to the previous facility have been closed out at a cost of GBP13.5 million.
Soumen Das, Finance Director of Capco commented, "This new debt facility allows
us the flexibility to manage and add value to our exciting and growing portfolio
at Covent Garden. It supports our strategic plans to consolidate the ownership
in this vibrant part of London through selective acquisition - building on one
of London`s great estates."
Peter Denton, head of UK real estate finance at BNP Paribas and Matt Webster,
Global Head of Real Estate Finance at HSBC Bank plc jointly commented: "Capco is
a perfect example of the sort of company that bank partners wish to work with.
It`s an exciting company with prime central London assets, focused on Covent
Garden and Earls Court, and we are pleased to support a genuine player in the
industry with such a growth strategy. "
-Ends-
Enquiries
Capital & Counties Properties PLC
Ian Hawksworth: Chief Executive +44 (0)20 3214 9188
Soumen Das: Finance Director +44 (0)20 3214 9183
Public relations
UK: Michael Sandler/Wendy Baker,
Hudson Sandler +44 (0)20 7796 4133
SA: Nicholas Williams,
College Hill Associates +27 (0)11 447 3030
About Capital & Counties Properties PLC (Capco)
Capco is one of the largest investment and development property companies that
specialises in central London real estate and is a constituent of the FTSE 250
Index. Capco holds 3.2 million square feet of assets valued at GBP1.5 billion
(30 June 2011) in three landmark London estates: Covent Garden, which has assets
valued at GBP780 million, including the historic Market Building; Earls Court &
Olympia Group and 50 per cent of the Empress State building in Earls Court
amounting to aggregate property assets of GBP488 million, and The Great Capital
Partnership, a joint venture with Great Portland Estates, which holds prime West
End properties of which Capco`s share is GBP240 million. The company is listed
on the London Stock Exchange and the JSE, Johannesburg.
www.capitalandcounties.com
Sponsor:
Merrill Lynch SA (Pty) Limited
Date: 08/11/2011 09:01:44 Produced by the JSE SENS Department.
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