Bruntwood refinances €265m with bank syndicate

Bruntwood, the Manchester-based commercial property company, has secured a £221 mln (€265 mln), five-year financing facility with a syndicate of four banks.

Barclays, HSBC, The Royal Bank of Scotland and Santander UK have each provided £55.25 mln to refinance existing debt and to support Bruntwood's future growth plans.

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 amongst the four lending banks.

Bruntwood is a family-owned commercial property company which with a portfolio of 110 buildings over four cities.

The company has refinanced its entire £600 mln of debt over the past 12 months, consisting of £435 mln of CMBS debt and £165 mln of bank facilities.

'In December we raised £120 mln from L&G, only their second ever 10-year property loan. In February our bondholders approved the extension of £229 mln of our CMBS out to 2016. And in July we issued a seven-year £50 mln retail bond - the first private property company to do so,' noted Kevin Crotty, Chief Financial Officer.

'Bruntwood has always made long term sustainable growth its priority, rather than short-term commercial gain. As a result, it is companies such as ourselves that have emerged from the recession fitter and stronger,' commented Bruntwood CEO Chris Oglesby.