Capital & Counties Properties has received a new £665 mln (€796 mln) unsecured debt facility for its £1.2 bn Covent Garden estate in London.
Capital & Counties Properties has received a new £665 mln (€796 mln) unsecured debt facility for its £1.2 bn Covent Garden estate in London.
The new loan has a five-year term and replaces three existing secured Covent Garden facilities. HSBC Bank and BNP Paribas acted as mandated lead arrangers for the facility, with Royal Bank of Scotland and Credit Agricole as arrangers and Santander and Wells Fargo completing the syndicate.
In a statement, Capco said that the new debt facility provides 'improved operational and financial flexibility to support the value growth strategy through the expansion of the premium retail and dining offer and selective developments including Kings Court and Carriage Hall'. The estate aims to reach an estimated rental value of £75 mln by December 2016.
Soumen Das, finance director of Capco, commented: 'It is Capco's first unsecured debt facility and marks a significant step forward in the evolution of the group's capital structure and funding model.'
Capco received planning consent in December 2013 for its proposals to transform the space between King Street and Floral Street within the Covent Garden estate.
The 90,000 sq ft (8,360 m2) scheme will create a new pedestrian passageway connecting Long Acre and King Street, a new public courtyard and new retail, restaurant and residential space.
In addition, a separate planning application in relation to the Carriage Hall building also received a resolution to grant consent. The Grade II listed building on the western end of Floral Street will be converted into a new 13,000 sq ft multi-brand retail space with a covered courtyard.
Work on the project is likely to commence in June 2014 and will take up to three years to complete.