X-Leisure fund raises EUR 59m in open offer

Capital & Regional and Hermes Real Estate have said that £50 mln (EUR 59 mln) in new equity has been raised for the X-Leisure Fund following the completion of the open offer announced in May.

The new equity for the fund which owns a portfolio of 21 leisure and entertainment venues in the UK was subscribed by 15 existing unit holders and one new investor. Capital & Regional subscribed £4 mln in cash and holds a 12% interest in the fund.

Capital & Regional said the fund's banking arrangements have been amended.

The fund has agreed with its syndicate of five banks to extend the life of the core banking facility to 31 March 2014 and to increase the loan to value covenant to 90% for the period to 31 December 2010, after which it falls in tiers to 65% from 1 July 2013. The interest cover ratio has been set at 130% until 31 March 2012 rising, in tiers to 150% from 1 April 2013.

The syndicate of banks has also agreed, in principle, to finance the Brighton Marina asset, which has been financed through an asset securitisation (CMBS) due to mature in October 2009.

The fund has separately renegotiated its banking arrangements for each of the Castleford and Milton Keynes Xscape facilities the impact of which (through increased LTV covenants) is to increase its financial flexibility.