Ask completes Co-op Bank refinancing

PROPERTY developer Ask has completed a “long term refinancing package” with The Co-operative Bank.

The Manchester company which has been hit by falling asset valuations and last month revealed a £18.7m loss for 2011 , said the deal with the Co-op Bank would allow it to develop and grow its portfolio of sites and schemes.
 
Ask did not disclose the size of the deal, but it will include a £7m term loan referred to in the company’s most recent accounts.
 
Chief executive Ken Knott said: “ In extremely challenging circumstances the company has delivered a resilient performance since the MBO almost three years ago and with the economic outlook remaining uncertain it is vital that we strengthen the company’s capital resources in order to ensure that we can fully and properly support the core portfolio going forward.’

‘We have streamlined our portfolio to focus exclusively on those projects which have the locational characteristics and place-making concepts to succeed in the new economy such as our flagship First Street project, The Embankment Greengate, Urmston town centre and Central Park.

“Given on-going difficult market conditions we are making remarkable progress at First Street and The Embankment Greengate. At Urmston work has now commenced on the final pre-let phase to complete this important £50m town centre scheme.”

A bullish Mr Knott added: “Excellent momentum is building on the transformational First Street North project, anchored by Cornerhouse/Library Theatre Company’s £24m new contemporary culture building with Melia Hotels International now secured for a 208 bedroom 4-star hotel and we are on schedule to commence on site in autumn with a phase extending to 500,000 sq ft unlocking an investment value of £80m.

“Similarly, pre-lets secured at the first phase of The Embankment Greengate project with Salford City Council and QPark have unlocked detailed negotiations with a preferred funding partner with whom we anticipate concluding a deal in the next quarter.”

A spokesperson at The Co-operative Bank added: “Ask Developments Group is a longstanding and valued customer of The Co-operative Bank and we are delighted to have concluded a refinancing that will provide the company with the platform to drive its portfolio forward.”