Land Securities announced on Tuesday that it is repaying £1.5 bn of debt and will repay further facilities during the calendar year. The leading UK REIT said the decision allowed it to return to a normal operating environment in its Security Group debt structure.
Land Securities announced on Tuesday that it is repaying £1.5 bn of debt and will repay further facilities during the calendar year. The leading UK REIT said the decision allowed it to return to a normal operating environment in its Security Group debt structure.
The move positioned the business strongly, Land Securities added, while 'retaining significant firepower from the rights issue proceeds and asset sales to take advantage of market opportunities'.
The firm estimates that the loan-to-value in its debt structure will be approximately 59% based on March 2009 valuations once the £1.5 bn (EUR. 1.6 bn) of debt is repaid.
Commenting on the decision, CEO Francis Salway said: 'We said at the time of our rights issue that we would continue to actively manage our balance sheet and repay debt when appropriate. Our recent activity in executing sales, raising new debt facilities against assets and managing costs has reinforced our confidence in our forecasts and means we have taken this step earlier than our internal plans had assumed.
'Today's decision strengthens our hand in positioning the business in a secure and strong state ready to take advantage of future opportunities.'
