DevSec gets debt extension on Manchester Arena
DEVELOPMENT Securities has agreed a repayment extension on debts it has against the Manchester Arena.
In an interim management statement covering the period from September 1, the property group said it had extended the maturity on the £47.5m bank loan by a year to June 2014.
Lloyds Bank arranged the loan in 2010 to finance the £62m purchase from regional landlord Capital & Regional and the multinational GE.Yorkshire Bank then took on half the debt in June 2011.
The arena is operated by SMG Europe and can accommodate 21,000 people.
Situated on an 8.3-acre site the complex also includes 157,000 sq ft of offices and a 1,075-space multi-storey car park.
Development Securities has a number of sites in the region, including shopping centres in Hale Barns and Chorlton, south Manchester.
In the statement it said: “The investment market outside of central London, where our portfolio is located, has continued to weaken as it did for most of 2012, against the backdrop of a double-dip recession.
“Within our investment portfolio, we continue to strive to limit void rates and add value where we are able in order to mitigate the impact of softening yields. Some indicators are emerging that would suggest that this sector of the market is approaching its low point.”
