Value Retail, developer and operator of outlet shopping villages across Europe, has refinanced Bicester Village with a fresh five-year senior loan syndicate, reports CoStar.
The facility, which was funded last month, was led by Lloyds and provided £110 million with commitments broadly equal between the remaining three banks, with the proceeds repaying the existing facility.
The developer’s previous facility was a £190 million five-bank syndicate, arranged in 2009 during the global financial crisis by WestImmo, which has subsequently ceased to lend in the UK, as has DG Hyp, also in the legacy syndicate.
The three additional banks – RBS, Helaba and Santander – have all returned to the new syndicate and increased their commitment.
Martin Green, Managing Director Mid Markets Real Estate, Lloyds Bank Commercial Banking, said: “Lloyds Bank is leading a strong bank club in providing a significant debt commitment to Bicester Village, and is becoming Value Retail’s UK clearing bank. We have taken time to develop a deep understanding of Value Retail’s business and look forward to broadening this meaningful relationship with them as they continue their success story.”
Based on a June 2012 valuation of Bicester Village which came in at £646 million, the loan to value (LTV) would be 49.5 per cent, according to Hammerson which has a 45 per cent economic interest in the shopping outlet. Over the subsequent nine months, Bicester Village’s value is understood to have risen further, placing the LTV at the time of the refinancing at below 50 per cent.
Lloyds Bank acted as lead arranger, agent and security agent with Helaba, The Royal Bank of Scotland and Santander acting as co-arrangers.
Scott Malkin, Chairman of Value Retail, said: “We appreciate the fact that our relationship banks understand and are supporting the outstanding quality of Bicester Village, and we look forward to continuing to work with them.”
Value Retail was advised by CMS Cameron McKenna. Lloyds, Helaba, RBS and Santander were advised by Berwin Leighton Paisner.
Bicester Village is one of nine outlet shopping Villages in Europe operated by Value Retail, and has consistently achieved double-digit sales growth since opening in 1995.
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