Bruntwood agrees £221m banking facility
PROPERTY group Bruntwood has completed its year-long £600m refinancing with a £221m four-bank facility.
The family-owned company, which owns property in Birmingham, Liverpool, Knutsford, Warrington and Leeds, has agreed a five-year deal with Barclays, HSBC, The Royal Bank of Scotland and Santander UK, each providing £55.25m.
It follows on from a £50m retail bond and a £120m loan with insurer L&G.
Chief executive Chris Oglesby said: “In a market where many property owners are constrained by excess debt, Bruntwood’s financial strength remains a major advantage.”
Chief financial officer Kevin Crotty added: “12 months ago, Bruntwood had £435m of CMBS (Commercial Mortgage Backed Securitisation) debt and £165m of bank facilities to refinance against the backdrop of a CMBS market that was closed and banks that were reducing their exposure to property.
“Bruntwood has demonstrated its financial standing and its ability to innovate in raising capital. In December we raised £120m from L&G, only their second ever ten year property loan. In February our bondholders unanimously approved the extension of £229m of our CMBS out to 2016. In July we issued a seven-year £50m retail bond (the first private property company to do so), and now we have completed an amazing 12 months with a five year £221m syndicated facility.”
Commenting on behalf of the lenders, David Hardcastle, head of Barclays’ real estate team in the North said:: “Bruntwood is growing thanks to its astute management team and by continuing to provide the finance to support their ongoing strategic plans, the banking group is confident Bruntwood will take full advantage of the growth opportunities in the markets it operates in.”
The deal was co-ordinated by Barclays, Pinsent Mason acted as legal advisers to the banks and Bruntwood were advised by Addleshaw Goddard.
HSBC also acted as sole hedge co-ordinator and execution bank for the restructuring of the underlying swap transactions, which were subsequently syndicated among the four lenders.
Bruntwood owns and manages three office schemes in Birmingham city centre: Cornwall Buildings in Newhall Street, the Mclaren building on Priory Queensway and Centre City in Hill Street.
