London & Associated Properties replaces RBS facility with £45m Santander and ECM package

London & Associated Properties (LAP), the listed UK shopping centre and central London retail property investor, has refinanced a maturing Royal Bank of Scotland senior loan with a combined £45m facility from two lenders.

Santander logoSantander has extended a £35m senior loan, thought to be priced around 190 basis points over three-month LIBOR, while Europa Capital Mezzanine (ECM) has closed a £10m mezzanine facility.

The new debt package is fully hedged and has a current blended interest cost of 4.79%.  Both loans are for a five-year term and are secured by LAP’s Orchard Square shopping centre in Sheffield and Market Row and Brixton Village, which are together valued at around £65m. 

Santander senior loan LTV is circa 55%, while ECM’s ends at 70%.

The facility, which closed yesterday, was arranged and agreed two months ago to refinance the maturing £60m RBS facility, which itself was a bridge facility refinancing from the original facility which matured in September 2012.

This refinances its entire Royal Bank of Scotland loan and releases funds for new acquisitions.

LAP has, as a result, extended its debt maturity profile with £45m of the company’s £60m debt repayable in July 2019 and a further £10m not due until August 2022.

John Heller, chief executive of LAP, commented that: “We are delighted to have completed the final step in addressing the company’s legacy loan and derivative positions. LAP is now better positioned to take advantage of market opportunities both for direct investment and joint venture asset management.”

LAP’s financial advisor was Alvarez & Marsal and its legal counsel was Olswang.


About CoStar News

Finance Editor, CoStar News
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