Legal & General Property (LGP) has completed the refinancing of its Leisure fund, agreeing a new £90 mln (€124 mln) term loan with two lenders, RBS and L&G’s lending arm.
Legal & General Property (LGP) has completed the refinancing of its Leisure fund, agreeing a new £90 mln (€124 mln) term loan with two lenders, RBS and L&G’s lending arm.
In addition, RBS has provided a £60 mln revolving credit facility which can be drawn down for future investment opportunities.
Replacing an £111 mln RBS facility that was due to expire in October 2016, the new £150 mln loan is arranged on a term expiring in December 2020 and brings the fund’s all-in cost of borrowing to below 2.7%.
L&G’s lending platform has taken a £60 mln stake in the new facility, based initially on a floating rate but fixed from Q4 2016 onwards, while RBS holds a £30 mln stake at a floating rate.
The loan is secured against 10 of the leisure parks held within the Fund. The initial drawdown is expected to be around £112 mln, offering a preliminary LTV ratio of around 30%. The financing will support the Fund’s Bournemouth leisure park development.
Formed in 2002, the Leisure Fund Limited Partnership is held through a Jersey Property Unit Trust and has over £421 mln of assets under management, comprising 11 prime leisure assets and a major development scheme in the centre of Bournemouth.
The fund offers an attractive income profile, with a weighted average unexpired lease term of close to 14 years.
