| Fri 6 May 2005, 15:59 | | Liberty International Plc - GBP710 Million Non-Rec |
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Liberty International Plc - GBP710 Million Non-Recourse Financing
Liberty International Plc
(Registration number UK3685527)
ISIN Code: GB0006834344
JSE Code: LBT
Issuer Code: LILII
6 May 2005
LIBERTY INTERNATIONAL PLC
GBP710 MILLION NON-RECOURSE FINANCING SECURED ON BRAEHEAD, RENFREW, GLASGOW, AND
THE HARLEQUIN, WATFORD
Liberty International PLC, through its wholly owned subsidiary, Capital Shopping
Centres PLC (`CSC`), has today entered into two new 10 year non-recourse term
loan facilities totalling GBP710 million secured on two of CSC`s regional
shopping centres, Braehead, Renfrew, Glasgow, and The Harlequin, Watford.
The new loans of GBP406.5 million in respect of Braehead and GBP303.5 million in
respect of The Harlequin are being provided by way of term finance from
Eurohypo, the specialist commercial real estate bank, via its conduit vehicle,
Opera Finance (CSC 3) plc. Opera`s participation is being funded through the
issue of GBP710 million of floating-rate commercial mortgage-backed securities
(CMBS). RBS and UBS acted as joint bookrunners on the issue.
This financing continues Liberty International`s programme of raising long-term
asset-backed non-recourse finance and the structure again enables Liberty
International to obtain capital market debt pricing while retaining the
flexibility of a bank loan. The underlying LIBOR rate has been fixed for the
term of the loans at 5.03 per cent and the blended margin, excluding the GBP60
million BBB tranche which Liberty International is retaining, is around 0.27 per
cent over LIBOR resulting in an overall rate of 5.30 per cent before costs.
The transaction follows the structure used for the GBP650 million refinancing of
Lakeside, Thurrock, CSC`s flagship regional shopping centre, in August 2004, and
the GBP600 million financing of MetroCentre, Gateshead, in February 2005. The
structure of the loan continues to provide CSC with full flexibility to
implement its active management approach at Braehead and The Harlequin.
The proceeds will be used, after repayment of the GBP172.5 million loan
currently outstanding on The Harlequin, to substantially refinance the GBP653
million acquisition by CSC in March 2005 of 50 per cent of Prudential Assurance
Company Limited`s interests in Cribbs Causeway, Bristol, and the Manchester
Arndale shopping centre, two of the UK`s leading regional shopping centres.
Donald Gordon, Chairman of Liberty International, commented:
`We are very pleased to have worked again with Eurohypo as arranger, and with
RBS and UBS as joint bookrunners, on this CMBS issue secured on Braehead,
Renfrew, Glasgow, and The Harlequin, Watford which substantially enhances our
overall debt structure as we continue to pursue our development programme.
Demand is still 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 once more enabled us to access the
attractive costs of financing available through these markets.`
ENQUIRIES:
Aidan Smith, Finance Director, Liberty +44 (0)20 7960 1210
International PLC
Peter Badcock, Director, Capital Shopping +44 (0)20 7887 7069
Centres PLC
ADDITIONAL NOTES ON LIBERTY INTERNATIONAL PLC GROUP FOR INFORMATION:
Liberty International PLC is the UK`s third largest listed property company with
investment properties exceeding GBP6 billion 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.
Braehead shopping centre and retail park, Renfrew, Glasgow, opened 5 years ago
in September 1999 and offers 1.06 million sq.ft. of retail and leisure with 117
shops and stores, a 4000 seat arena and skating and curling rinks. The centre
is located approximately 5 miles to the west of Glasgow city centre on the south
bank of the River Clyde, easily accessible from the M8 motorway. In addition to
the shopping centre and retail park which are the subject of this financing, CSC
is involved in substantial regeneration activity relating to a further 165 acres
at Braehead including some 1,350 new homes, a riverside park and walkway, and
Xscape, a 460,000 sq.ft. leisure scheme providing Scotland`s first indoor real
snow ski slope, a multiplex cinema, bowling and restaurants scheduled to open in
2006. CSC also has planning consent for some 750,000 sq.ft. of office space.
Work has started on the first residential development and on the Xscape complex.
The Harlequin, located at the heart of Watford town centre, has excellent links
to the M25 and M1. Anchored by John Lewis, Marks & Spencer and Bhs, it offers
724,000 sq.ft. of retail space with 146 shops and stores, cafes and restaurants,
and a comprehensive range of customer facilities.
In March 2005, the Liberty International group acquired 50 per cent of the
Prudential group`s overall interests in two of the UK`s leading regional
shopping centres, The Mall at Cribbs Causeway, Bristol and the Manchester
Arndale Shopping Centre, and associated properties, for an aggregate
consideration of GBP653 million.
Date: 06/05/2005 03:46:33 PM
Produced by the JSE SENS Department
