| Tue 25 Jun 2002, 0:00 | | Liberty International Plc - Gbp211 Million Secures |
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Liberty International Plc - GBP211 Million Secures Term Financing
LIBERTY INTERNATIONAL PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: LBT
Issuer Code: LILI I
25 June 2002
GBP211 MILLION 12 YEAR NON-RECOURSE TERM FINANCING SECURED ON
THE GLADES, BROMLEY AND THE CHIMES, UXBRIDGE SHOPPING CENTRES
Liberty International PLC ("Liberty International") announces that the Group
has entered into a 12 year financing arrangement secured on The Glades,
Bromley and The Chimes, Uxbridge, two of the major shopping centres managed
by its subsidiary, Capital Shopping Centres PLC ("CSC").
The arrangement, which has been structured by HVB Real Estate Capital
("HVBREC") the UK arm of HypovereinsBank ("HVB"), enables CSC to benefit
from a significantly lower interest margin than a conventional non-recourse
secured bank loan. The covenants allow for full financial and management
flexibility with CSC continuing to actively manage these two important
assets. The proceeds from the facility, which will increase the Group`s
cash and committed unutilised bank facilities to over GBP600 million, will
provide medium term funds for CSC`s expanding investment and development
programme.
The loan represents 65% of the open market value of the two shopping centres
based on an external valuation by CB Hillier Parker appointed by HVBREC.
The facility has a final maturity in 2014 but can be repaid at any time and
after two years without penalty. The interest rate is linked to LIBOR but
through use of financial instruments has been largely fixed for the term of
the facility.
The Liberty International Group holds a 63.5% interest in The Glades,
Bromley under a 125 year lease from CGNU expiring 2113. CGNU and the London
Borough of Bromley (the headlessor and freeholder) hold interests of 21.5%
and 15% respectively. Rental income is shared in accordance with the
respective interests of the parties. The Glades, Bromley, which opened in
October 1991 enjoys a dominant position in the town and together with the
existing High Street retailing provides the premier regional shopping
destination for South-east London. The Glades consists of some 416,000
sq.ft. of prime retail space and draws from a catchment of 1.5 million
people within a 30 minute drive time and has an annual footfall of
approximately 19 million. The Glades incorporates 130 shops and restaurants
anchored by Debenhams, M&S and Boots together with an integrated car park
consisting of 1,530 car spaces.
The Liberty International Group has a 100% freehold interest in The Chimes,
Uxbridge. The Chimes opened in March 2001 and has quickly established
itself as a major prime new retail destination on the western perimeter of
the Greater London area with over 12 million shoppers visiting during its
first year, drawn from a catchment of 1.5 million people within a 20 minute
drive time. The Chimes consists of 440,000 sq.ft. of retail space, anchored
by a Debenhams department store, together with 80 other shops and stores, a
multiplex cinema and an external piazza providing quality restaurants and
leisure facilities. In addition the centre benefits from an integrated car
park providing 1,600 car spaces.
The current development programme of CSC includes a major GBP80 million
extension at MetroCentre, Gateshead and projects at Oxford, Cardiff and
Liverpool which are at the planning stage. In addition, CSC has contracted
with Lend Lease Europe to acquire a major new shopping centre in Norwich,
conditional on satisfactory completion of the centre, scheduled for 2005,
and achievement of the required letting level.
Commenting on the loan facility, Donald Gordon, Chairman of Liberty
International, said:-
"We are delighted to have worked with HVBREC in creating this
innovative financing structure which we believe combines the benefits of
capital markets with the flexibility expected from a traditional loan
funding. We are confident that the efficiencies offered by this financing
will provide a substantial saving of interest over the term of this
facility. This transaction continues the Group`s strategy of financing our
major shopping centre assets on a non-recourse basis, whilst retaining full
financial and operational flexibility to continue our active management and
to deliver added value in the future.
This facility follows on from the GBP730 million 15 year facility secured on
MetroCentre, Gateshead and Braehead, Glasgow and the GBP550 million 10 year
facility secured on Lakeside, Thurrock in 2001 bringing the total non-
recourse finance raised on the Group`s major shopping centres to some GBP1.5
billion".
Georg Funke, Executive Chairman of HVBREC added, "This transaction is
reflective of our partnership approach with our clients. CSC has been a
valued client of ours for some time; to provide this form of innovative
structured finance and share with CSC the funding efficiencies is
particularly pleasing."
Contacts:
Liberty
International
David Fischel Chief Executive 020 7960 1207
Peter Badcock Executive Director 020 7887 7069
HVB Real Estate
Capital
Michael White Executive Director 020 7573 8755
Harin Thaker Executive Director 020 7573 8237
Public Relations
UK - Michael Hudson Sandler 020 7796 4133
Sandler
SA - Matthew College Hill 020 7457 2020
Gregorowski
SA - Nick Elwes College Hill, SA +27 11 447 3030
Date: 25/06/2002 08:08:12 AM Produced by the SENS Department
