"Financing projects from £50,000 to £100 million"

Redefine arranges £50 million commercial mortgage for Weston Favell

Redefine arranges £50 million commercial mortgage for Weston Favell

Redefine International has announced a major financing rearrangement that has enabled it to purchase the Weston Favell Shopping Centre in Northampton.

The diversified income focused property company has agreed a new commercial finance arrangement with Aviva Commercial Finance Limited that will reduce the loan-to-value on its UK shopping centre portfolio from 64% to 57%.

The deal involves a restructuring of the debt secured against the Grand Arcade in Wigan, which will be reduced by half, and the West Orchards Shopping Centre in Coventry, which will be repaid in full from Redefine’s cash reserves.

As part of the arrangement, the company has agreed to the purchase of Weston Favell Shopping Centre on the edge of Northampton for £84 million.

The property comprises over 300,000 sq. ft of retail space over two floors, over half of which is occupied by Tesco.

The addition to the portfolio benefits from the lack of competition for supermarkets in the area, which helps it to raise £6.4 million per year in net rental income.

Aviva will provide a commercial mortgage worth £50 million at 5.7%, repayable in 25 years.

The Chairman of Redefine International, Greg Clarke, commented on the deal:

"This Transaction not only produces a reduction in the Company’s see through leverage ratio, but is expected to be earnings accretive from day one.

"The Weston Favell Shopping Centre is dominant in its local area and will benefit from our long term focus on delivering income through focused asset management activity."

Friday, 18 October 2013 12:25
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