| Wed 2 Feb 2005, 15:48 | | Liberty International Plc - Statement re: New GBP |
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Liberty International Plc - Statement re: New GBP 600 Million Facility
LIBERTY INTERNATIONAL PLC
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: LBT
Issuer Code: LILI I
2 February 2005
LIBERTY INTERNATIONAL PLC
REFINANCING OF GBP730 MILLION NON-RECOURSE LOAN SECURED ON METROCENTRE,
GATESHEAD, AND BRAEHEAD, RENFREW, GLASGOW, WITH A NEW GBP600 MILLION FACILITY
SECURED ON METROCENTRE ALONE
Liberty International PLC, through its wholly owned subsidiary, Capital Shopping
Centres PLC (`CSC`), has refinanced the current GBP730 million non-recourse term
and revolving loan originally secured on CSC`s two regional shopping centres,
MetroCentre, Gateshead, and Braehead, Renfrew, Glasgow, with a new GBP600
million non-recourse 10 year term loan facility secured solely on MetroCentre.
The new loan comprises GBP600 million by way of term finance from Eurohypo, the
specialist commercial real estate bank, via its conduit vehicle, Opera Finance
(MetroCentre) plc. Opera`s participation is being funded through the issue of
GBP600 million of floating-rate commercial mortgage-backed securities (CMBS).
The transaction follows the structure used for the GBP650m refinancing of
Lakeside, Thurrock, CSC`s flagship regional shopping centre, in August 2004 and
enables Liberty International to again obtain capital market debt pricing while
retaining the flexibility of a bank loan. RBS and UBS acted as joint
bookrunners on the issue.
The refinancing of the MetroCentre, Gateshead, continues Liberty International`s
programme of raising long-term asset-backed non-recourse finance. The GBP600m
raised will be used to repay the GBP535m loan outstanding under the existing
facility. Liberty International is retaining the GBP68m BBB tranche of bonds,
which it may use to raise further funds through sales in the secondary CMBS
market in the future. The loan has been refinanced at a blended margin of
around 0.24 per cent over LIBOR before costs, resulting in a net saving to
Liberty International estimated at around GBP4 million per annum and Braehead
becoming free of debt.
The structure of the loan continues to provide CSC with full flexibility to
implement its active management approach at MetroCentre.
Donald Gordon, Chairman of Liberty International, commented:
`We are very pleased to have worked with Eurohypo again as arranger, and with
RBS and UBS as joint bookrunners, on this refinancing of the MetroCentre,
Gateshead, which is Europe`s largest covered shopping centre. Demand is strong
in the capital markets for highly-rated debt securities backed by premium assets
such as our regional shopping centres and using Eurohypo`s CMBS funded loan
structure has enabled us to access the attractive costs of financing available
through these markets. The refinancing of MetroCentre, Gateshead, has provided
us with a reduction in our financing costs of around GBP4 million per annum, as
well as leaving us in the attractive position of having Braehead free from debt
as it moves into its first rent review cycle.`
Enquiries:
Aidan Smith, Finance Director, +44 (0)20 7960 1210
Liberty International PLC
Peter Badcock, Director, Capital +44 (0)20 7887 7069
Shopping Centres PLC
Additional notes on Liberty International PLC group for information:
Liberty International PLC is the UK`s third largest listed property company and
a constituent of the FTSE-100 Index of the UK`s leading listed companies.
Liberty International owns 100 per cent of Capital Shopping Centres, the premier
UK regional shopping centre business, and Capital & Counties, a commercial and
retail property investment and development company concentrating in Central
London, South East England and California, USA.
MetroCentre, Gateshead, (1.8 million sq.ft.) is Europe`s largest covered
regional shopping and leisure centre, with 335 shops and stores and a variety of
leisure attractions. In October 2004, the new GBP85m Red Mall extension was
opened, fully let and providing a new department store for Debenhams, 28 new
shop units, an 1100 space car park and a new bus station.
Braehead, Phase 1 of which opened 5 years ago in September 1999, offers 1.06
million sq.ft. of retail and leisure with 117 shops and stores, a 4000 seat
arena and skating and curling rinks. A 300,000 sq.ft. IKEA occupies an adjacent
site. Phase 2 amounts to some 165 acres and involves substantial further
regeneration activity including some 1,350 new homes, a riverside park and
walkway, and Xscape, a leisure scheme providing Scotland`s first indoor real
snow ski slope, a multiplex cinema, bowling and restaurants scheduled to open in
2006. There is also planning consent for some 750,000 sq.ft. of office space.
Work has started on the first residential development and on the Xscape complex.
Date: 02/02/2005 03:13:23 PM
Produced by the JSE SENS Department
